Which of the Following Statements About the Risk Reduction Is

question 43

Multiple Choice

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

• A) When the probability distribution is non-normal, risk cannot be reduced by increasing the pool size.
• B) After the pool size has reached 36, risk can no longer be reduced any further.
• C) Risk is reduced as the pool size increases.
• D) All of the above are correct.

---

Definitions:

Indorsement

The act of signing one's name on the back of a negotiable instrument, which transfers the property rights to another.

Indorsements

Written approvals or endorsements on documents, especially checks or promissory notes, to signify agreement, consent, or transfer.

Payable

Refers to debts or financial obligations that an entity is required to pay within a specific period, such as bills or invoices.

Negotiation

Negotiation is the process whereby interested parties discuss, deliberate, and come to an agreement on terms and conditions that are mutually acceptable.