There Have Been a Series of Large Judgments in Product

question 9

Multiple Choice

There have been a series of large judgments in product liability cases against companies producing hair dryers. If this trend continues, insurance companies will respond by ________ the premiums charged for liability insurance for hair dryer manufacturers.

• A) lowering
• B) canceling
• C) increasing
• D) underwriting

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Definitions:

Losing Positions

Investments that have decreased in value from the original purchase price, leading to potential financial losses for the investor.

Active Investments

Investment strategies that involve frequent transactions and monitoring by investors or fund managers with the aim to outperform market indexes.

Forecasting Errors

Discrepancies between predicted values and actual values that occur when projecting future data points or trends.

Passive Investments

Investment strategies that involve minimal buying and selling actions, typically focused on long-term appreciation and mimicking market or sector indexes.