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Q2. Jay rents a room in his house to a college student. In the event that the house is seriously
damaged by a fire or other peril, what kind of loss(es), in addition to the actual cash value of the
damaged home, is Jay likely to encounter? A2. (At least one loss exposure; and inappropriate
explanation will make deduction)
Solution
Jay Loses his Rental Income which he can earn when the house exists
This is a Oppurtunity Cost for JAy

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