Question 2Ranking Retrospective Rating Plans The Risk Manager asks you to address the following questions: (A) 6 marks Assuming that losses will be $650,000 as expected, use the Risk Financing goal of minimizing the cost of risk to rank the 5 different proposals: a. The 4 different retrospective rating proposals; and b. The guaranteed cost insurance proposal; in order from 1 to 5, with 1 being the most desirable, and 5 being the least desirable. Explain your rationale why these individual plans are desirable, or not desirable, from the perspective of minimizing the cost of risk. (B) 2 marks Which of the 5 plans would you recommend that Taunton consider, and why