A mechanism for reallocating risk is:
A) risk premiums.
B) dividend pooling.
C) diversification.
D) All of these are mechanisms for reallocating risk.
Correct Answer:
Verified
Q93: Insurance works because it:
A) reallocates the costs
Q95: Risk pooling:
A) reduces the chances of catastrophes
Q96: In general,people are willing to pay more
Q97: In general, the amount people pay for
Q98: When risks are shared across many different
Q98: Diversification involves:
A) investing all your money in
Q99: Risk diversification refers to the process by
Q100: Risk pooling occurs when:
A) people organize themselves
Q101: In making decisions about insurance,a crucial piece
Q102: In making decisions about insurance,a crucial piece
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