Question: Let's use the following formula to define objective risk factor. 1/ (square root of number of homes insured) For example 100 homes insured against fire.

Let's use the following formula to define

Let's use the following formula to define objective risk factor. 1/ (square root of number of homes insured) For example 100 homes insured against fire. Objective risk factor would be 1/ (square root of 100) Objective risk =(1/10) Objective risk factor =.1 or 10%. This means that expected losses and actual losses are expected to differ by 10%. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX The objective risk factor of a fire insurance portfolio composed of 1 million homes is 100 times less than a portfolio of 100 similar homes. True False QUESTION 24 Click Save and Submit to save and submit. Click Save All Answers to save all answers

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