All of the Following Statements About Aviation Insurance Are True

question 38

Multiple Choice

All of the following statements about aviation insurance are true EXCEPT

• A)Physical damage coverage can be written on an "all-risks" basis.
• B)Liability coverage also applies to bodily injury arising out of the premises where the aircraft is stored.
• C)Liability coverage applies to liability assumed by contract.
• D)Aviation insurance is a highly-specialized market with relatively few insurers.

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Definitions:

Jensen's Measure

A performance evaluation tool that measures the excess return of a portfolio above the expected return, accounting for risk.

Risk-Free Return

The theoretical return on an investment with zero risk, typically represented by government securities like Treasury bills.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher than market volatility.

Treynor Measure

A performance metric for determining how well an investment compensates the investor for the risk taken, considering systematic risk.