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    Risk Management and Insurance Study Set 1
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    Exam 5: Risk-Handling Techniques: Diversification and Hedging
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    Can Risk Be Completely Eliminated
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Can Risk Be Completely Eliminated

Question 55

Question 55

Multiple Choice

Can risk be completely eliminated?


A) No, never
B) Yes, as long as the exposure units are positively correlated
C) Yes, as long as the exposure units are not correlated and enough are in the pool
D) Yes, as long as the correlation coefficient is 0.1

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