Subjective estimate of risk exposure

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True or False:

The use of loss distributions lead to a subjective estimate of risk exposure.

One reason insurable losses must be definite is to allow measurability of the losses.

When a probability distribution of a variable is not known, it can be estimated using prior experience.

When assessing the financial impact of a firm's pure risks, a risk manager is interested in calculating a measure of the long-run average loss that is expected in the future.

Reference no: EM132825867

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