Risk-bearing financial institutions diversify risk by combining a large number of exposure units in a risk group.

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Risk-bearing financial institutions diversify risk by combining a large number of exposure units in a risk group. Describe the types of exposure units found in the risk groups of an insurer, a mutual fund, and a pension.

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Introduction to Risk Management and Insurance

ISBN: 978-0131394124

10th edition

Authors: Mark S. Dorfman, David Cather

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Question Posted: Dec 07, 2015 06:10 AM

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Risk-bearing financial institutions diversify risk by combining a large number of exposure units in a risk group.

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Introduction to Risk Management and Insurance

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