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I. Diversifiable Risk. In light of what you've learned about market versus diversifiable risks, explain why an insurance company has no problem in selling life

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I. Diversifiable Risk. In light of what you've learned about market versus diversifiable risks, explain why an insurance company has no problem in selling life insurance to indi but is reluctant to issue policies insuring against flood damage to residents of coastal areas Why don't the insurance companies simply charge coastal residents actuarial probability of damage from hurricanes and other storms? (LO12-1) a premium that reflects the

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