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puteri [66]
3 years ago
14

An insurance company’s projected loss ratio is 77.5 percent, and its expense ratio is 23.9 percent. It estimates that dividends

to policyholders will add another 5 percent. What is the minimum yield on investments required in order to maintain a positive operating ratio? (LG 15-6)
Business
1 answer:
Elanso [62]3 years ago
6 0

Answer:

6.4%

Explanation:

For computing the minimum yield on investment, first we have to find out the combined ratio which is shown below:

= Projected loss percentage + expense ratio + dividend percentage

= 77.5% + 23.9% + 5%

= 106.4%

So, the minimum yield on investment required is

= 106.4% - 100%

= 6.4%

The 100% is the percentage value

We simply applied the above formula

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Answer:

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2 years ago
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Mazyrski [523]

Answer:

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Explanation:

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3 years ago
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What's the difference between current balance and available balance?
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