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.

Question

Quizplus · Accepted Answer

Insurance markets do reduce risk through diversification. By spreading the risk across a large number of policyholders, insurers are able to pool their risks and reduce the overall risk for each individual policyholder.

Which of the Following Is Not Correct