Assume that your wealth in a no-loss state of the world is $100. Also assume that the probability of a loss = 0.2 and the size of the potential loss is $50. If you purchased partial coverage (with a limit of $25) with an actuarially fair (zero loading) policy, what would be your wealth in a loss state of the world ? less than $50 more than $50 but less than $65 more than $65 but less than $85 more than $85n