How does government's power to coerce behaviour tend to reduce private - sector risk? ? The coercive power of government only increases private - sector

How does government's power to coerce behaviour tend to reduce private$-$sector risk?

$\mathrm{�}$ The coercive power of government only increases private$-$sector risk.

$\mathrm{�}$ By strictly regulating the allocation of most property resources in the economy.

$\mathrm{�}$ By guaranteeing that the government will financially cover any losses by private$-$sector firms.

$\mathrm{�}$ By enforcing contracts and discouraging illegal behaviour that threatens private property.