Australia Has a Complex and Fragmented System of Worker's Compensations

question 4

Multiple Choice

Australia has a complex and fragmented system of worker's compensations systems which operates under a 'insurance model',with premiums collected from:

• A)an annual percentage paid by employees.
• B)the state worker's compensation system.
• C)an annual subscription to the State Insurance Regulatory Authority.
• D)employers based on the risk of work injury occurring at any given employer / workplace.

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Definitions:

Active Portfolio

An active portfolio involves strategic buying and selling of stocks or other securities, managed by analysts or fund managers, aiming to outperform the market average or a benchmark index.

Sharpe Measure

Sharpe Measure, or Sharpe ratio, is used to assess the performance of an investment by adjusting for its risk, comparing the excess return over the risk-free rate to the standard deviation of the investment.

Personal Risk-Aversion

An individual's degree of unwillingness to accept uncertainty in investment outcomes or financial decisions.

Treynor-Black Model

A portfolio optimization model that blends a passively managed market portfolio with actively managed portfolios to achieve higher risk-adjusted returns.