An efficient allocation of risk occurs when those most willing to bear risk put their capital at risk to insure those who are least willing to bear risk.False

Name: An efficient allocation of risk occurs when those most willing to bear risk put their capital at risk to insure those who are least willing to bear risk.False
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Question

Quizplus · Accepted Answer

An efficient allocation of risk involves transferring risk to those who are most willing and able to bear it, thereby optimizing the distribution of risk in the economy.

An Efficient Allocation of Risk Occurs When Those Most Willing