1.

Which of the following is an example of anex postrisk-coping strategy?

a. Diversifying activities

b. Informal insurance arrangements

c. Selling off assets

d. Saving

2.

Which of the following is NOT a difference between hedge fund managers and the poor?

a. Their level of income

b. They live with huge amounts of risk

c. Whether they have limited liability

d. Whether they have to raise capital themselves

3.

Index Insurance is better at addressing

a. Idiosyncratic shocks

b. Covariate Shocks