A mechanism for reallocating risk is:
A) risk pooling.
B) dividend pooling.
C) risk premiums.
D) None of these statements is true.
Correct Answer:
Verified
Q85: Investing all your money in one company
Q86: Risk pooling:
A) assures the individuals that they
Q89: Insurance premiums represent:
A) the expected value of
Q91: Risk pooling:
A)reallocates the likelihood of catastrophes happening.
B)reallocates
Q91: Insurance companies:
A) profit from the difference between
Q93: Insurance works because it:
A) reallocates the costs
Q95: Risk pooling:
A) reduces the chances of catastrophes
Q97: In general, the amount people pay for
Q98: When risks are shared across many different
Q107: Which of the following entities can diversify
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