Which of the Following Is Not a Characteristic Commonly Assessed

question 6

Multiple Choice

Which of the following is not a characteristic commonly assessed by insurance regulators to detect any problems in an insurance company?

• A) liquidity of the asset portfolio
• B) relative size of operating expenses
• C) return on investment
• D) All of the above are assessed by regulators.

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Definitions:

Projects

Specific tasks or programs undertaken to meet particular goals, often requiring significant time, resources, or investment.

Information Content Effect

The market’s reaction to a change in corporate dividend payout.

Share Price

The current market price of a single share of a company’s stock, which can fluctuate based on supply and demand.

Quarterly Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, to shareholders on a quarterly basis.