Business
Financial advisors encourage investors to hold a well- diversified portfolio of investments. Explain whether this level of diversification can protect an investor if a. one of her stock holdings is a firm with an unsuc- cessful new product launch, or b. the global economy falls into a recession.
Describe the concept of risk aversion. Is it an equally appropriate strategy for dealing with pure and speculative risks?
Describe the alternatives available to people and firms across the globe to protect themselves from adverse loss exposures.
How does social insurance differ from private insurance? In your answer, explain why some loss exposures are insured better through social insur- ance than through private insurance.
Explain why it may be advantageous for people to get insurance protection from employee benefit plans instead of buying individual insurance policies.
