1. (Limit of diversification) The limit of diversification says that the risk of a large portfolio will be the average (systemie) covariance of the assets in the portfolio Ajax Health Insurance specializes in comprehensive health coverage for people over 70 years old. It advertises low premium, total coverage, and it allows members to choose their own doctors. It says that everyone over seventy will be accepted regardless of their health. Can Ajax survive as viable insurance business? Explain briefly