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Suppose f > 1/a, so that separation is attractive for good risks. Which statement is correct? a)Separation is both P- and HK-efficient b)Separation is P-efficient

Supposef >1/a, so that separation is attractive for good risks. Which statement is correct?

a)Separation is both P- and HK-efficient

b)Separation is P-efficient but not HK-efficient

c)Separation is HK-efficient but not P-efficient

d)Separation is neither P- nor HK-efficient

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