This is Mary Walden with economist MW welcoming you to the economic perspective. Today’s program asks why we take risk. Mike, Hurricane Florence did a massive amount of damage to North Carolina, including to our beautiful coast. Storms at the coast are not unusual, which raises the question of why people take the risk of living there. Is there a logical answer?
- Risk is part of life
- Daily risks from driving or crossing the street
- Bigger risks with coastal living or investing in the stock market
- Can’t avoid the smaller risks, but could avoid the larger ones
- Why take – potential benefits
- If take larger risks, important to manage them
- In investing – diversified investments
- Coastal living – insurance, as well as precautions
- Risk is not for everyone; but think about how to manage if taken
And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.