Question: I believe the answer is D, because it would decrease to 1%, but I am not confident. 10. An insurer estimates its objective risk, as

I believe the answer is D, because it would decrease to 1%, but I am not confident.

10. An insurer estimates its objective risk, as measured by the standard error, for 10,000 exposure units to be 10 percent. Assuming that the probability of loss remains the same, how would the objective risk change if the number of exposure units increase to 1 million? You can assume that homogeneity and independence hold true. C. a. It would remain the same b. It would increase to 20 percent It would decrease to 5 percent d. None of the above are correct

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