Question

How can mutuality help reduce risk in financial markets?

a.

By increasing the probability of risk events

b.

By reducing the need for diversification

c.

By encouraging individuals to take more risks

d.

By sharing risks among a group of policyholders

Posted under IC38 Life Insurance Agent Exam

Answer: (d).By sharing risks among a group of policyholders Explanation:Mutuality involves sharing risks among a group of policyholders, which can help reduce risk in financial markets.

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Q. How can mutuality help reduce risk in financial markets?
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