Temporary Evidence of Insurance Until a Policy Is Actually Issued

question 13

Multiple Choice

Temporary evidence of insurance until a policy is actually issued is provided by a(n)

• A)binder.
• B)brokerage agreement.
• C)pre-approval form.
• D)endorsement.

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Definitions:

Strong-Form Efficient

A hypothesis that states all information, both public and private, is completely accounted for in stock prices, and that no investor can achieve consistently higher returns.

CAPM

The Capital Asset Pricing Model, a formula used to determine the expected return of an asset based on its beta and expected market returns, thus assessing its inherent risk and cost of capital.

Beta

A measure of a security's or portfolio's volatility, or systematic risk, in comparison to the market as a whole.

Risk-free Rate

The risk-free rate is the theoretical return on an investment with zero risk, often represented by the yield on short-term government securities.