2674. Which of the following is incorrect? A. Mutuality means funds from various individuals are combined B. Diversification means spreading out funds to various destinations.

A is correct
B is correct
Both A & B
None of the above
✅ The correct answer is D.
Both the statements are incorrect.
Mutuality is the principle of private, commercial insurance; individuals enter the pool for sharing losses, and pay according to the best estimate of the risk they bring with them and Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio.

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