Risk Diversification Refers to the Process by Which

Multiple Choice

Risk diversification refers to the process by which:

A) people organize themselves in a group to collectively absorb the cost of the risk faced by each individual.
B) insurance companies change the risk aversion of their clients.
C) risks are shared across many different assets or people, reducing the impact of any particular risk on any one individual.
D) insurance companies reallocate the likelihood of catastrophes happening.