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Which of the Following Statements Is (Are) True with Respect

question 12

Multiple Choice

Which of the following statements is (are) true with respect to an equity-indexed annuity?
I.The maximum percentage gain is usually capped.
II.There is no downside protection against loss of principal if the annuity is held to term.


Definitions:

Contribution Margin

The amount by which the sale of a product or service exceeds its variable costs, contributing to covering fixed costs and generating profit.

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