When risks are shared across many different assets or people, reducing the impact of any particular risk on any one individual, it is called:
A) diversification.
B) risk pooling.
C) risk aversion.
D) risk analysis.
Correct Answer:
Verified
Q93: Jackson owns a house worth $350,000 in
Q94: Jude owns a house worth $250,000 in
Q95: Risk diversification refers to the process by
Q96: Risk pooling occurs when:
A)people organize themselves into
Q97: In general, the amount people pay for
Q99: What is the foundational principle that allows
Q100: Risk pooling:
A)reduces the chances of catastrophes happening.
B)lowers
Q101: In the context of insurance, everyone typically
Q102: Diversification involves investing all your money in:
A)one
Q103: In terms of insurance, which of the
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