Option E, All the above are examples of funded retention
Explanation:
Funded retention — risk management term refers to a program in which an entity retains assets in advance, instead of distributed to the insured or another group, to pay for risks incurred by the company.
The insurance exclusion is a common example of a transfer of risk to save premiums, as a deduction is a limited risk that can save insurance premium costs for greater risks.
Based on the cost or absence of commercial insurance companies actively maintain certain risks–which is commonly known as self-insurance.
Macro events only are reflected in the performance of the market portfolio because the specific risks have been diversified away.
A market portfolio is a theoretical bundle of investments that consists of each kind of asset to be had within the investment universe, with each asset weighted in proportion to its total presence in the market. The predicted return of a market portfolio is equal to the expected go back of the market as a whole.
The market portfolio is a basket of assets created by an investor the use of varied set of investments. The basket can encompass securities like pension plans, mutual funds, shares, actual property, bonds, foreign currencies, and assets like silver, gold, coins, bitcoins to call some.
The basic expected return method includes multiplying every asset's weight in the portfolio via its anticipated return, then including all the ones figures together. In different words, a portfolio's anticipated return is the weighted average of its personal components' returns.
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A licensee has 2 closings but her broker kept part of the commission to pay for expenses the licensee charged to the company. if the licensee files a complaint with the board, then the TREC does not handle disputes over commissions.
An income commission is the amount of money paid to a worker upon the crowning glory of a venture, usually selling a positive amount of products or offerings. Employers sometimes use sales commissions as incentives to increase worker productivity. A commission may be paid similarly to an income or rather than earnings.
Employers offer a commission to encourage their employees and lead them to be extra effective and generate more income and appeal to clients. sales and advertising jobs in many industries, along with vehicles and actual property, typically offer fee-based repayment.
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Ordinarily, the automobile insurance includes<u> 4 basic features. </u>
The first one is the body bodily injury coverage - which covers the fee of medical expense, lost wags or pain, etc. which you may have to suffer from when you are injured in accident.
The second one is the property damage coverage. As in some situation, you may cause accident leading to damage of other vehicle or property. This feature of insurance would help you to pay for these expense to compensate.
The third feature is comprehensive coverage. This is optional in your insurance and it would cover the expense on repair in case of fire or natural disaster, theft, etc.
The last one is collision coverage, which support the fee of repair of vehicle due to the crash with other vehicle.
Answer:
True
Explanation:
The reason is that the straight line equation is used to illustrate the relation between the rate of return and the beta factor and is given as under:
Y = a + bX
Here
a = Rf
B = Risk premium = Rm - Rf
X = Beta Factor
So this means the security market line is the graphical presentation of capital asset pricing model and illustrates why the increase in beta factor increases the required rate of return, the reason is that the the overall required return Y of the investment will start increasing with the increase in the beta factor.
So the statement is true.
