Individuals who face greater risks a. are less likely to purchase insurance b. are neither more nor less likely to purchase insurance c. are risk neutral d. are more likely to purchase insurance

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Frost

Business

6 December, 20:04

Individuals who face greater risks a. are less likely to purchase insurance b. are neither more nor less likely to purchase insurance c. are risk neutral d. are more likely to purchase insurance

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Answers (1)

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Martha Walls · Answer 1

The correct answer is letter "D": are more likely to purchase insurance.

Explanation:

Risk lovers is a term used to define people who are prone to take higher risks. The opposite is represented by risk-averse individuals who keep a conservative position when it comes to risk. Risk lovers tend to gamble or engage investments with high potential for returns or losses.

Risk lovers usually buy insurance to mitigate eventual losses.