Question: Please match the statement with the correct answer as it pertains to the use of hedging and insurance to address each type of risk exposure:
Please match the statement with the correct answer as it pertains to the use of hedging and
insurance to address each type of risk exposure:
Risk is transferred by a contract
Involves the transfer of pure risks
Involves risks that are typically
uninsurable
Fewer problems of moral hazard and
adverse selection buying or selling
futures
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