2. The ABC Stonge Company provides warchoase facilities maisly for housheld poods moviag companies. Up until now, ABC has folly retained all theft and burglary losies to poods stoced at its facility. ABC is cobsidering severnl nisk management altematives. One is to employ Abe services of a security coenpany. It is estimated that the security servike will bre the following effect on the annual loss distribution associated with thef and barglary louke: Total Annual After-Tas Dollar Losses from Burglary and Theft St The security company will provide the service for $1800 per year. Asother aliemutive considered is barglary insurance. ABC has received a premiam quotatioe of $6000 per year without the security service and $3500 per year with the security service. Assume a one-period model, a tax rate of 50% and an interest rate of 0%. a. Calculate the expected annual loss from burglary and theft with and without the secunty service. b. Calculate the expected annual cost using insurance with and without the secarity service. c. Which of the four options should be chosen