Extent does diversification help the farmer to reduce risk

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Reference no: EM131009626

Suppose that rice is pays out $1000 per hectare while quinoa also pays out $1000 per hectare if the rainy season is short. If the rainy season is long, rice pays out $400 per hectare while quinoa also pays out $400 per hectare. In this scenario, to what extent does diversification help the farmer to reduce risk: A. Not at all

B. Less than before, but still helps

C. The same as before

D. More than before

E. More information is needed

Reference no: EM131009626

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