Suppose you have calculated the value of the risks for your insurance company. What is the required risk based capital for your insurance company? C0 =50,000 C1CS =45,000 C10 =350,000 C2=440,000 C3a =5,000 C3b =100,000 C3c= 95,000 C4a = 16000 C4b = 70,000   a) $ 1,051.19 b) $ 67,051.19 c) $ 595,084.03 d) $ 661,084.03

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Q: quiz 8-17

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Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.