### The maximum expected loss ratio

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##### Reference no: EM13939453

Refer to the following information for this question:

Annual Data Thousands of Dollars

-Losses incurred \$18,000

-Expenses/commissions \$7,500

-Dividends paid to policyholders \$ 750

-Investment income on premiums \$ 1,600

Which of the following is true?

A) Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is \$7,500

B) Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is \$26,750

C) Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is \$ 17,500

D) Everything else constant, the maximum expected loss ratio that would yield a profitable line after including investment income is \$ 18,350

E) None of the above

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