Risk pooling:
A) reallocates the likelihood of catastrophes happening.
B) reallocates the costs of catastrophes when they occur.
C) diversifies the risk of catastrophes occurring.
D) gathers individuals with similar risks in their life and pools them together.
Correct Answer:
Verified
Q84: Diversification involves:
A) investing all your money in
Q85: Investing all your money in one company
Q85: Risk diversification refers to the process by
Q87: The fee that insurance companies collect in
Q89: Insurance premiums represent:
A) the expected value of
Q92: The foundational principle that makes insurance companies
Q93: Insurance:
A)reduces the risks inherent in life.
B)helps individuals
Q94: Insurance companies:
A)profit from the difference between the
Q95: Risk pooling:
A)doesn't reduce the risk of catastrophes
Q98: When risks are shared across many different
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