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Which of the following statements about the risk pooling is correct?
A) Risk pooling works best if the number of parties involved is small.
B) Risk pooling reduces the standard deviation of the loss distribution.
C) Risk pooling increases the loss probability.
D) Risk pooling can be used to increase the cost of bearing risk.
Answer: B
The above question Which of the following statements about the risk pooling is correct?, Was part of Insurance MCQs & Answers. I hope you got the correct answer to your question. Have a great time ahead.
