Multiple Choice
Which statement about the mathematically fair price for insurance is true?
A) People who will pay no more than the mathematically fair price for insurance are considered to be risk neutral.
B) People who will pay no more than the mathematically fair price for insurance are considered to be risk seeking.
C) When everyone pays the mathematically fair price for insurance, subsidization is reduced or eliminated.
D) The mathematically fair price is impossible to calculate.
Correct Answer:
Verified
Correct Answer:
Verified
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