Can Risk Be Completely Eliminated

question 55

Multiple Choice

Can risk be completely eliminated?

• A) No, never
• B) Yes, as long as the exposure units are positively correlated
• C) Yes, as long as the exposure units are not correlated and enough are in the pool
• D) Yes, as long as the correlation coefficient is 0.1

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Definitions:

Merchantability

A warranty that a product will meet reasonable expectations of quality and fitness for use as sold.

Frame Breaks

can refer to interruptions or disconnections in the structural continuity of a building, vehicle, or other objects, often requiring repair or restructuring.

Express Warranty

An explicit promise made by a seller to a buyer regarding the condition, quality, or performance of the goods being sold.

Implied Warranty

A legal presumption that a product will perform as expected, despite no express statement of such quality assurance being made.