One way to hedge labor income is to ____________________.

Question

Quizplus · Accepted Answer

By diversifying your investment portfolio away from the industry in which you work, you can reduce the impact of any potential downturns or job losses in your industry on your overall income. This can help to hedge against the risk of job loss or income reduction. The other choices, such as saving only from investment income or changing careers every 7 years, may not be practical or effective for everyone, and investing heavily in your firm's stock options can also expose you to the risk of concentration in a single company or industry.

One Way to Hedge Labor Income Is to ____________________