... whether the odds will yield a profit on averageA risk-averse person–will refuse a fair gamblei.e. one which on average will make exactly zero monetary profitA risk-lover–will bet ... Chapter 15 Coping with risk in economic lifeDavid Begg, Stanley Fischer and Rudiger Dornbusch, Economics, 6th Edition, McGraw-Hill, 2000Power Point presentation by Peter Smith 15. 2Individual ... risk.Diversification –is a strategy of reducing risk by risk-pooling across several assets whose individual returns behave differently from one another.Beta–is a measurement of the extent to which...