2. Refer to the following information for this question

Annual Data	Thousands of Dollars
Premiums earned	$25,000
Losses incurred	$17,000
Expenses/Commissions	$7,500
Dividends paid to policyholders	$750
Investment income on premiums	$1,600

Which of the following is true?

Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $7,500.

Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $26,750.

Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $17,500.

Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $18,350.

Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $16,250.

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