The excess of the nominal interest rate over the TIPS interest rate is known as the

Which of the following is an example of risk diversification?

A) an individual purchasing only IBM stock B) an insurance company writing earthquake insurance only for the Los Angeles area C) an individual investing all of her savings in a single, new firm D) a lumber mill purchasing trees from various forests across the western United States

The endowment effect suggests that that people

A) are concerned about the welfare of others. B) act in ways to distort market prices. C) have a strong attachment to their entitlement, regardless of whether they paid to acquire it. D) have a strong sense of fairness.