The Difference in Conditions (DIC)contract Is Designed To

question 13

Multiple Choice

The difference in conditions (DIC) contract is designed to:

• A)increase the policy limits on all liability coverages
• B)broaden the legal liability policy coverage to cover intentional acts of foreign employees
• C)increase the policy limits and lower deductibles of all property insurance contracts
• D)fill the gaps in perils in basic property insurance contracts

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Definitions:

Securities' Returns

The profit or loss derived from investing in a security, including dividends, interest, and capital gains.

Correlation Coefficient

The correlation coefficient is a statistical measure that calculates the strength of the relationship between the relative movements of two variables.

Portfolio Opportunity Set

The expected return–standard deviation pairs of all portfolios that can be constructed from a given set of assets.

Efficient Frontier

A portfolio optimization concept that plots the best possible return for a given level of risk based on various asset combinations.