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Most people are risk-averse and stocks are risky yet most

Most people are risk-averse and stocks are risky, yet most people who own financial assets own stocks.

a. Explain why a risk-averse person would own risky assets like stocks.

b. Explain why a risk-averse person would probably own stocks through a mutual fund, which holds many different stocks.

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Financial Management: Most people are risk-averse and stocks are risky yet most

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Financial Management: Most people are risk-averse and stocks are risky yet most

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