Assignment information [e.g., background info, assignment question, further advice}: Background information Households and risk management Households live the paradox of being expected to adopt a positive attitude towards risk while at the same time behaving nancially responsibly. They are expected to actively manage their assets [for example houses and equity investments} and liabilities {for example personal loans and mortgages} and optimize their portfolio by diversifying and planning ahead. Assignment question \"Deep and wideranging disaggregation [deregulation] has left households with the responsibility for making important and technically complex micro nancial decisions involving risk-such as detailed asset allocation and estimates of the optimal level of life cycle saving for retirement decisions that they had not had to make in the past, are not trained to make in the present, and are unlikely to execute efciently in the future [...]\" (Merton, EDDG, p.41 Critically assess this claim. Elaborate on this point while taking into oonsideration the distinction between rationality under risk, weak uncertainty, and strong uncertainty. Further advice 1. Make sure that your answers contain clearly articulated, consistent arguments, and ground them in primary sources and readings, as much as possible. 2. There is no one correct view the idea is to build a cogent argument. 3. You are expected to have engaged with essential and recommended readings at the very least, and this should be apparent in your essay through appropriate references. 4. Using your own examples, rather than those discussed in the lectures or seminars, is highly recommended