Actuarily fair insurance reduces risk without changing the expected value of a gamble.
Answer the following statement true (T) or false (F)
True
Rationale: This is in fact the definition of actuarial fairness.
You might also like to view...
If a nation is a net importer it means that the:
A) nation only imports goods and services and does not export any good. B) nation only imports those goods in which it has an absolute disadvantage. C) nation's imports are worth more than exports over a given period of time. D) nation prohibits the import of goods and services that can be produced domestically.
In October 2005, the U.S. Fish and Wildlife Service banned the importation of beluga caviar, the most prized of caviars, from the Caspian Sea. What happened in the market for caviar in the United States?
A) The demand curve shifted to the right. B) The demand curve shifted to the left. C) The supply curve shifted to the right. D) The supply curve shifted to the left.