Question: 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
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
- Remind the main features of normal function distribution ?
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?
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