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Which statement on risk-diversification on capital markets is correct? Diversification leads to over-insurance. Hence, it creates no social value. Diversification creates social value. It should
Which statement on risk-diversification on capital markets is correct?
- Diversification leads to over-insurance. Hence, it creates no social value.
- Diversification creates social value. It should therefore by stimulated by regulators.
- Regulators must regulate diversification to avoid over-insurance.
- Financial markets lead to an efficient level of risk-diversification
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