Question (20 marks) (a) Explain how an investment in loss control may change the optimal mix between risk retention and risk transfer in a given situation. (4 MARKS) (b) Explain the relationships of expected loss frequency and severity in the use of risk retention and risk transfer (5 MARKS) (c) State in detail some of the difficulties associated with the use of the aggregated approach to risk management. (6 MARKS) (d) Contrast the loss exposure of a worker becoming disabled to those occurring at the workers' death