Given the following probabilities: [A]=0.02, [B]=0.80, [C]=0.85, [D]=0.65, [E]=0.70,

(1) Determine the branch line likelihoods for each outcome;

(2) Determine the total annualized risk;

(3) Define what acceptable loss means;

(4) If the accumulated risk from Question (2) above is greater than $15,000 over a 10-year period (the established acceptable loss in this instance) how can the risk be reduced and by what amount should it be reduced to meet the acceptable loss criteria?