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Author Question: After Hurricane Katrina, there was considerable public outrage that many of the properties were not ... (Read 88 times)

B

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After Hurricane Katrina, there was considerable public outrage that many of the properties were not insured against flooding although they were insured against wind damage. What might explain these different approaches to insurance?
 
  A) The risk of wind damage is potentially diversifiable, but the risk of flooding is not.
  B) The risk of flood damage is potentially diversifiable, but the risk of wind damage is not.
  C) predatory insurance policies
  D) Neither the risk of wind damage nor the risk of flooding is diversifiable.

Question 2

A stock mutual fund's primary advantage is to allow
 
  A) investors to diversify away systematic risk.
  B) investors to diversify away all risk.
  C) investors to diversify away idiosyncratic risk.
  D) the rich to avoid taxes.


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CharlieArnold

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B

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Reply 2 on: Jul 1, 2018
Wow, this really help


Animal_Goddess

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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