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Suppose that you and your best friend are planning a 2-month trip to Europe next summer. You have the option to buy insurance for the

Suppose that you and your best friend are planning a 2-month trip to Europe next summer. You have the option to buy insurance for the following risks during the trip: lost luggage, medical expenses in case of emergency, and/or flight cancellation. However, your friend decides not to buy insurance for any of these risks. Does this imply that your friend is risk-loving? What information could your friend have taken into account when deciding?

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