Which of the following is a mechanism for reallocating risk?
A) Risk premiums
B) Dividend pooling
C) Diversification
D) All of these are mechanisms for reallocating risk.
Correct Answer:
Verified
Q84: Insurance works because it:
A)reallocates the costs of
Q85: In general, people are willing to pay
Q86: Which of the following is a mechanism
Q87: Insurance policies can be bought to cover
Q88: Risk pooling:lowers the overall cost of a
Q90: Insurance premiums often represent:
A)the expected value of
Q91: Risk pooling:
A)reallocates the likelihood of catastrophes happening.
B)reallocates
Q92: The fee that insurance companies collect in
Q93: Jackson owns a house worth $350,000 in
Q94: Jude owns a house worth $250,000 in
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