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inysia [295]
3 years ago
15

How is insurance a trade-off between risk and cost?

Business
1 answer:
Solnce55 [7]3 years ago
8 0

<u>Explanation:</u>

Risk is involved in all types of investment the higher risk yields higher returns while lower risk yields lower returns. The trade off which the investor faces in making investment decisions is the risk return trade off.

In insurance the cost of risk includes the expected losses which are uncertain.  The trade off which is provided by insurance can be direct and indirect losses, internal risk reduction and residual uncertainty.  Insurance reduces the expected losses and eliminate the risk of loss by providing cover the cost of which depends on the nature of the risk.

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With regard to compensation in cooperative sales, the____________ broker will be the person who handles the commission splits fo
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Answer: listing

Explanation: A listing broker is a professional in real estate who is licensed to obtain the contractual right to sell a form of property. A listing broker is also the person who supplies the listing agreement. This broker needs to share the commission made with the selling broker.

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3 years ago
Which factor should influence the organizational pattern you choose? a. your number of section headings b. all responses are cor
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Organizational pattern here refers to a way of organization written document. There is numerous type of these, depending on the type of document you are making. Some examples include topical pattern, where you write your document by starting with a description of the topic you are presenting, to causal pattern, where you present your writing in order to explain how a phenomenon occurs and why it happened in such a manner.

Thus, the best answer for the given question is (C) your readers’ expectations.

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3 years ago
Who benefits from the free market economy ​
natali 33 [55]

A free market economy has two key advantages. First, it allows for individuals to innovate. Individuals have the freedom to create new ideas, new products, and new services to sell for profit. They are not required to only produce what the government tells them to produce.

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3 years ago
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6 0
3 years ago
The returns of ABC Company and the market are listed below. Compute the beta for ABC Company stock (Hint: Think rise over run).
PilotLPTM [1.2K]

Beta = Covariance/Variance where: Covariance=A measure of an investment's return in relation to the market Variance is a measurement of how the market deviates from its mean.

Compute the beta for ABC Company stock ?

The standard deviation of returns for the asset could be divided by the standard deviation of returns for the benchmark to determine beta. The correlation between the security's returns and the benchmark's returns of 32.21 percent is multiplied to arrive at the final number.

Given that AAPL's beta of 0.6035 suggests the stock theoretically experiences 40 percent less volatility than SPY, AAPL would be regarded as being less volatile than SPY in this situation.

A stock with a beta greater than 1.0 fluctuates more than the market over time. A stock's beta is less than 1.0 if it moves less than the market. High-beta equities typically carry higher risks but also have a bigger potential reward. Although they carry less risk, low-beta equities often offer lesser returns.

Because of this, beta is frequently employed as a risk-reward ratio, which aids investors in deciding how much risk they are ready to accept in order to reap the potential rewards. It's crucial to take stock price volatility into account when determining risk. Beta is a useful proximate for risk if you view of risk as the likelihood that a stock would depreciate in value.

Beta = Covariance/Variance where: Covariance=A measure of an investment's return in relation to the market Variance is a measurement of how the market deviates from its mean.

Learn more about beta company stock here:

brainly.com/question/15017110

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2 years ago
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