Which of the Following Statements About the Risk Pooling Is

question 15

Multiple Choice

Which of the following statements about the risk pooling is correct?

• A) Risk pooling works best if the parties involved have heterogeneous risk characteristics.
• B) Risk pooling works best if the number of parties involved is small.
• C) Risk pooling works best if the loss experience of the parties involved is statistically dependent.
• D) Risk pooling, assuming some assumptions are met, reduce overall risk.

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Definitions:

Covalent Bonds

Bonds formed by the sharing of electrons between atoms.

Complementary DNA

DNA synthesized from a messenger RNA (mRNA) template in a reaction catalyzed by the enzyme reverse transcriptase, often used in cloning and gene expression studies.

Chromosome Library

A collection of DNA fragments representing the entire genome of an organism, organized within chromosomes for study and reference.

Genomic DNA

The complete set of DNA within an organism, encompassing all its genes and non-coding sequences.