Which of the following statement is incorrect?

a. Loss prevention is a type of loss control activity that reduces expected losses by lowering the frequency of the loss event (lowers the probability).

b. All the answers are correct.

c. Many businesses achieve internal risk reduction through diversification and through investments in information to improve forecasts of expected cash flows.

d. A bio-tech stock may have smaller variance (more predictability) of its outcomes and therefore it is less risky than a utility stock.

e. The indirect losses could be due to additional operating expenses.