Which of the Following Is Not Correct

question 10

Multiple Choice

Which of the following is not correct?

• A)The higher average return on stocks than on bonds comes at the price of higher risk.
• B)Risk-averse persons will take the risks involved in holding stocks if the average return is high enough to compensate for the risk.
• C)Insurance markets reduce risk,but not by diversification.
• D)Risk can be reduced by placing a large number of small bets,rather than a small number of large bets.

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Definitions:

Single-Person Households

Living arrangements where an individual resides alone in a dwelling.

Increased

A term denoting something that has become larger or greater in size, amount, or degree.

Decreased

Describes something that has been reduced in size, amount, extent, or degree.

Fastest Growing Groups

Categories or segments of populations that are increasing in number at a more rapid rate than others within a given geographical, professional, or demographic area.