Author Question: Which of the following statements regarding insurance and hedging is true? A) Both insurance and ... (Read 129 times)

Collmarie

  • Hero Member
  • *****
  • Posts: 569
Which of the following statements regarding insurance and hedging is true?
 
  A) Both insurance and hedging deal only with pure risks.
  B) Insurance reduces objective risk while hedging involves only risk transfer and not risk reduction.
  C) Hedging reduces objective risk while insurance involves only risk reduction and not risk transfer.
  D) Both insurance and hedging reduce objective risk but do not involve the transfer of risk.

Question 2

If insurers were to provide indemnification for losses that were deliberately caused, which characteristic of ideally insurable risks would not be met?
 
  A) The loss must be accidental and unintentional.
  B) The loss must be determinable and measurable.
  C) The loss should not be catastrophic.
  D) There must be a large number of similar exposure units.



jennafosdick

  • Sr. Member
  • ****
  • Posts: 345
Answer to Question 1

Answer: B

Answer to Question 2

Answer: A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

Medications that are definitely not safe to take when breastfeeding include radioactive drugs, antimetabolites, some cancer (chemotherapy) agents, bromocriptine, ergotamine, methotrexate, and cyclosporine.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

For a complete list of videos, visit our video library