I- Give two examples from our real life for the kinds of risks listed below:

1. Pure and diversifiable risk

2. Pure and non-diversifiable risk

3. Speculative and diversifiable risk

4. Pure and non-diversifiable risk

II- Regarding the normal distribution, answer the following questions:

1. Define a random variable.

2. Define a probability distribution.

3. What does represent the expected value?

4. What does represent the standard deviation?

5. Remind the main features of normal function distribution seen in class.

III- Regarding, risk dimensions, answer the following questions:

1. What are the two key features of risk that we must assess?

2. Remind the link between the average loss, average frequency, and average severity.

3. Define the convolution. In what consists its importance?