5. Suppose the loss limit is $2,000. Prince Benjamin suffered three losses in one policy period: $1,500, $2.500 and $3.000. The loss amount used to calculate the premium of Benjamin's retrospective insurance plan is $ 4. Which of the following statements is (are) true? 1. The inflation risk is diversifiable. II. There is a natural hedge if two risks move in the same direction. a. I only b. ll only c. Both I and II d. Neither I nor 11