Risk Pooling

question 27

Multiple Choice

Risk pooling:

• A)reallocates the likelihood of catastrophes happening.
• B)reallocates the costs of catastrophes when they occur.
• C)diversifies the risk of catastrophes occurring.
• D)gathers individuals with similar risks in their life and pools them together.

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Definitions:

Activities

Activities are tasks, operations, or processes carried out by individuals or groups in the pursuit of their objectives or interests.