Question

In: Finance

1. Which of the following is not an example of a risk transfer technique? a. the...

1. Which of the following is not an example of a risk transfer technique?

a. the purchase of insurance from a commercial insurance company

b. the purchase of a futures contract to hedge against an increase in the price of a commodity

c. a firm’s decision to self-insure the costs of medical expense benefits owed to workers injured on the job

d. all the above are examples of risk transfer techniques

Solutions

Expert Solution

A firm’s decision to self-insure the costs of medical expense benefits owed to workers injured on the job


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