Match List I with List II

LIST I

LIST II

A.

Extra risk that an investor must incur to enjoy a higher expected return.

I.

Risky Asset

B.

Tendency of individuals to value an item more when they own it than when they do not.

II.

Moral Hazard

C.

Provides an uncertain flow of money or services to its owner.

III.

Price of Risk

D.

When a party whose actions are unobserved can affect the probability of payment associated with an event.

IV.

Endowment effect

Choose the correct answer from the options given below:

Question

LIST I		LIST II
A.	Extra risk that an investor must incur to enjoy a higher expected return.	I.	Risky Asset
B.	Tendency of individuals to value an item more when they own it than when they do not.	II.	Moral Hazard
C.	Provides an uncertain flow of money or services to its owner.	III.	Price of Risk
D.	When a party whose actions are unobserved can affect the probability of payment associated with an event.	IV.	Endowment effect