1. Suppose Joe and Leo both face the following individual loss distribution: Probability of Loss Amount of Loss $0 0.2 $40 $60 0.7 0.1 A. Determine the expected loss and standard deviation of the expected loss faced by Joe and Leo on an individual basis. B. Suppose that Joe and Leo enter into a pooling-of-losses arrangement. Show what happens to the expected loss and variability of the expected loss as a result of the pooling arrangement