Identify the Correct Statement About Risk-Based Capital

question 15

Multiple Choice

Identify the correct statement about risk-based capital.

• A)It is an asset that does not appreciate.
• B)These are unearned premiums which may turn into a liability in the future.
• C)It is an asset with values that are stagnant over time.
• D)These are assets than have the lowest risk of all other assets.
• E)Equities held as investments are examples of this asset.

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Definitions:

Random

Manifesting without any discernible pattern or strategy, happening randomly.

Presale Testing

The process of evaluating the potential market success of a new product or service before its full-scale launch.

Probability

The quantification of an event's occurrence probability, expressed with a number from 0 to 1.

Computer Chip

A small piece of semiconducting material on which an integrated circuit is embedded.