Which of the Following Statements Is True

question 64

Multiple Choice

Which of the following statements is true?

• A)FIs may set an aggregate limit of less than the sum of two individual industry limits if two industry groups' performance are negatively correlated.
• B)FIs may set an aggregate limit of less than the sum of two individual industry limits if two industry groups' performance are highly correlated.
• C)FIs may set an aggregate limit of less than the sum of two individual industry limits if two industry groups' performance are not correlated.
• D)FIs may set an aggregate limit of more than the sum of two individual industry limits if two industry groups' performance are negatively correlated.

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Definitions:

Suffering

The state of undergoing pain, distress, or hardship, which can be physical, emotional, or psychological.

Complained

To express dissatisfaction, discomfort, or annoyance about something.

Cycle

A sequence of events that repeat in a regular pattern.

Standards

Accepted levels of quality or achievement established by authority, custom, or common consent, used as a basis for comparison or compliance.