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C12 Sample Exam Answers  Form

C12 Sample Exam Answers Form

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question one which of the following represents a pure risk a Terry places a bet on the outcome of a basketball game B Margaret's dog is temperamental she's afraid that it will bite a neighbor someday and she will be held responsible see Sam transfers all of his retirement funds into a stock that he expects to rise in value D Cindy along with 32 others puts 100 into an Indy 500 race pool at work the person holding the name of the winning driver will win the entire 3 300 answer is B a pure risk is one that involves only the possibility of loss choices a c and d are examples of speculative risks in which there exists both the possibility of gain and the possibility of loss question two the law of large numbers a prohibits insurance with extremely high premiums B states that there must be a narrow spread of risk for insurance to be effective C states that the more examples used to develop a statistic the more reliable the statistic will be D requires all members of society

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