BuyFindarrow_forward

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985

Solutions

Chapter
Section
BuyFindarrow_forward

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985
Textbook Problem

Describe three ways that a risk-averse person might reduce the risk she faces.

To determine

Three ways of risk aversion.

Explanation

There are three ways of risk aversion namely purchase insurance, diversification of portfolio, and choice of safer alternatives by accepting a lower rate of return.

Purchase insurance: The one way to deal with the risk is to buy insurance. The general feature of insurance contract is that a person facing a risk pays a fee to the insurance company, which in return agrees to admit all or part of the risk. That is, the insurance companies share the loss.

Diversification of portfolio: Diversification will help to reduce the risk in portfolio...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

In what ways is economics a science?

Principles of Microeconomics (MindTap Course List)

What is trade associations role in encouraging ethics?

Foundations of Business (MindTap Course List)

Why must researchers document their sources meticuousIy?

Essentials of Business Communication (MindTap Course List)

What two things does GDP measure? How can it measure two things at once?

Principles of Macroeconomics (MindTap Course List)

Define assets, liabilities, owners equity, revenues, and expenses.

College Accounting (Book Only): A Career Approach

RESULTS OF EXCHANGE RATE CHANGES Early in June 1983, it took 245 Japanese yen to equal 1. In June 2013, that ex...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)