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If You Have Maximized Your RRSP Contributions,have Positive Cash Flow

question 80

Multiple Choice

If you have maximized your RRSP contributions,have positive cash flow and wish to maximize the transfer of wealth to your beneficiaries,which would be the most efficient choice of insurance?


Definitions:

Firm-specific Risk

The type of risk that affects a particular company or industry, as opposed to systemic risk, which affects the entire market.

Correlation Coefficient

A statistical measure that describes the extent to which two variables fluctuate together, ranging from -1 (perfect negative correlation) to +1 (perfect positive correlation).

Covariance

A measure of the degree to which two variables move in relation to each other, indicating the direction of their relationship.

Expected Return

The anticipated return on an investment, averaging in the probability of different outcomes.

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