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. A is correct

B. B is correct

C. Both A & B

D. None of the above

Answer: Option D

Solution(By Examveda Team)

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.