Which of the Following Statements About the Risk Pooling Is

question 5

Multiple Choice

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

• A) Risk pooling works best if the number of parties involved is small.
• B) Risk pooling reduces the standard deviation of the loss distribution.
• C) Risk pooling increases the loss probability.
• D) Risk pooling can be used to increase the cost of bearing risk.

---

Definitions:

Presenteeism

The act of attending work while sick, resulting in reduced productivity and potentially spreading illness to others.

Mindfulness

A state of mind attained by directing attention to the current moment, peacefully recognizing and accepting one's emotions, thoughts, and physical sensations.

Present Moment

The current point in time, often emphasized in mindfulness practices as a focus for awareness and engagement, free from distraction by past or future concerns.

Stressors

Factors, events, or conditions that cause stress or tension.