One of the Problems with No-Fault Automobile Insurance Is That

question 30

Multiple Choice

One of the problems with no-fault automobile insurance is that it

• A) results in higher court costs.
• B) results in higher jury awards to victims.
• C) doesn't penalize drivers who cause accidents to the degree that they should be.
• D) hasn't resulted in lower costs to insurance companies or lower auto insurance premiums.

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Definitions:

Non-diversifiable Risk

The portion of risk that can't be eliminated through diversification, often related to systemic factors affecting all investments.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.

Systematic Risk

Systematic risk refers to the overall market risk that cannot be eliminated through diversification, affecting all investments to some extent.

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, leading to a negative balance of trade.