Risk pooling:
A) assures the individuals that they are less likely to have a catastrophe occur.
B) reduces the risk of catastrophes happening collectively to groups.
C) doesn't reduce the chances of catastrophes happening to individuals.
D) None of these statements is true.
Correct Answer:
Verified
Q81: The foundational principle that makes insurance companies
Q82: Insurance:
A) reduces the risks inherent in life.
B)
Q83: Diversification:
A) reduces the likelihood that bad things
Q84: Diversification involves:
A) investing all your money in
Q85: Investing all your money in one company
Q89: Insurance premiums represent:
A) the expected value of
Q90: A mechanism for reallocating risk is:
A) risk
Q91: Risk pooling:
A)reallocates the likelihood of catastrophes happening.
B)reallocates
Q91: Insurance companies:
A) profit from the difference between
Q107: Which of the following entities can diversify
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents