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Explain the concepts of risk pooling and the insurance principle. What does the insurance principle tell investors? In the same context, explain the concept and

Explain the concepts of risk pooling and the insurance principle. What does the insurance principle tell investors? In the same context, explain the concept and message of risk sharing. Finally, what is the implication of risk pooling and risk sharing for longer-term investing? Does risk fade in the longer run? Explain.

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