Independent Risks Can Be Diversified by Holding a Large Number

question 31

True/False

Independent risks can be diversified by holding a large number of uncorrelated assets with independent risks.

---

Definitions:

Jury Duty

The civic responsibility of citizens to serve on a jury in a court of law, contributing to the judicial process by deliberating on legal cases.

Family and Medical Leave Act

U.S. legislation granting eligible employees up to 12 weeks of unpaid leave for certain family and medical reasons, with continuation of group health insurance coverage under the same terms and conditions as if the employee had not taken leave.

Paid Time Off

A policy that gives employees a set amount of days off that are paid by the employer, covering absence for reasons like vacation, illness, and personal time.

Preferred Provider Organization

A managed care organization of medical doctors, hospitals, and other health care providers who have agreed with an insurer to provide health care at reduced rates to the insurer's clients.