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Mairoon Mairoon
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6 years ago
Farmers who purchase insurance against crop failures tend to be pooled with farmers far away. Why might this be the case?
A) The weather in a single geographic area represents idiosyncratic risk, which is diversifiable.
B) The weather in a single geographic area represents systematic risk, which is not diversifiable.
C) The weather in far-flung geographic areas represents systematic risk, which is not diversifiable.
D) The weather in far-flung geographic areas are commonly positively correlated.
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Microeconomics

Microeconomics


Edition: 6th
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TecShdwTecShdw
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6 years ago
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Mairoon Author
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6 years ago
Great answer, great website
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