A consumer is said to be risk-averse when the consumer

Question

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A risk-averse consumer prefers to hold assets with less non-diversified (specific) risk. This means they prefer assets that have lower risk of large losses due to specific events, such as investing in a single company's stock. They might prefer diversified investments, such as a mutual fund, or assets with lower overall risk, such as bonds or savings accounts. Choices A, B, D, and E do not necessarily indicate a preference for lower non-diversified risk.

A Consumer Is Said to Be Risk-Averse When the Consumer