Which of the Following Statements About the Exposure Units and Risk

Multiple Choice

Which of the following statements about the exposure units and risk pooling is not correct?

A) Exposure units should not be exposed to risk in order to be added to the risk pool.
B) Risk pooling is the ability to reduce the risk of an exposure unit by creating more homogenous pool of units.
C) Risk pooling works best if the number of exposure units is small.
D) Risk pooling is the ability to reduce the risk of an exposure unit by making more accurate predictions about a large pool of units.