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Refer to the following information for this question: Annual Data Thousands of Dollars Premiums earned $25,000 Losses incurred $17,000 Expenses/Commissions $7,500 Dividends paid to policyholders

Refer to the following information for this question:

Annual Data

Thousands of Dollars

Premiums earned

$25,000

Losses incurred

$17,000

Expenses/Commissions

$7,500

Dividends paid to policyholders

$750

Investment income on premiums

$1,600

Which of the following is true?

Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $7,500.

Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $26,750.

Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $17,500.

Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $18,350.

Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is $16,250.

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