Risk retention is optimal for losses that have
A) high expected severity,
B) low expected frequency but high severity,
C) low expected severity,
D) high frequency and high severity.

Question

Quizplus · Accepted Answer

Risk retention is most suitable for losses that are expected to have low severity, as these are more manageable and less financially burdensome for an individual or organization to absorb without significantly impacting their financial stability.

Risk Retention Is Optimal for Losses That Have