An individual can almost eliminate risk by taking a small share in many independent events or by taking advantage of the predictability associated with large numbers of independent events. This is known as:
A) specializing.
B) floating.
C) pooling.
D) insuring.

Question

Quizplus · Accepted Answer

Pooling involves spreading risk across many independent events, reducing the impact of any single event on the overall outcome.

An Individual Can Almost Eliminate Risk by Taking a Small