Assume that Riot Games Inc. (Riot) is a company that manufactures games and is owned by people with well-diversified portfolios. The company's estimated average annual property loss is $2,000,000. Riot is considering several options to finance those property losses. If insurance is chosen, the premium loading would be 20% of Riot's expected losses. If Riot chooses to use reserve funding, a key supplier (Piltover) will demand higher contract prices due to the increased risk of bankruptcy in the amount of $240,000. (3 pts) Would insurance or retention be preferred to pay for Riot's losses given the note above?