Insurance for Large Risks That Cannot Be Well Diversified Has

question 5

Multiple Choice

Insurance for large risks that cannot be well diversified has a ________,which increases its cost.

• A)positive beta
• B)moral hazard clause
• C)negative beta
• D)actuarially-biased risk

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Definitions:

Internalization

The process of accepting or absorbing an idea, opinion, belief, or norm so that it becomes part of one’s own belief system or practices.

Parental Roles

The tasks, responsibilities, and functions that parents are expected to fulfill in the upbringing of their children.

Involved Fathers

Fathers who actively participate in their children's lives, contributing to their care, development, and well-being through emotional support, physical presence, and engagement in activities.

Child Rearing

The process of supporting and promoting the physical, emotional, social, and intellectual development of a child from infancy to adulthood.