Chapter 7: End of Chapter Exercises Homework Due in 5 days 0 3/13 answered Chapter 7 Review Questions 6 Homework - Unanswered Explain the relationships of expected loss frequency and severity in the use of risk retention and risk transfer. When expected frequency is high or low along with low expected severity, retention makes the most sense because the entity can afford to pay for or can predict those losses. Only when the expected severity is high and the expected frequency is low should trasfer be considered. When both expected severity and frequency are high risk avoidance is recommended. When expected frequency is high or low along with low expected severity, avoidance makes the most sense because the entity cannot afford to pay for and cannot predict those losses. Only when the expected severity is high and the expected frequency is low should avoidance be considered. When both expected severity and frequency are high, risk transfer is recommended. 1 attempt left Fullscre Unanswered