Risk Retention Group Is

question 326

Multiple Choice

Risk retention group is:

• A) A public entity formed by the members of the public pool primarily to provide business risk competency to the members.
• B) A business entity formed by the members of the private pool primarily to provide commercial asset insurance to the members.
• C) An insurance entity formed by the members of the private pool primarily to provide commercial liability insurance to the members.
• D) An insurance entity formed by the members of the public pool primarily to provide commercial expense insurance to the members.

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Definitions:

Holding Period

The length of time an investment is held by an investor before being sold.

Riskless Arbitrage

A financial strategy that aims to profit from discrepancies in the price of identical or similar financial instruments on different markets or in different forms without risk.

Spot Oil Prices

The current market price at which oil can be bought or sold for immediate delivery.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield on government securities.