Which Statement Is False

question 144

Multiple Choice

Which statement is false?

• A)An author noted that half of those who buy whole or universal life drop them within 10 years.
• B)The insurance industry is regulated by state insurance commissioners.
• C)Your need for life insurance coverage will change over time.
• D)A new life insurance policy will cost more as you get older.
• E)You will always be insurable if you switch policies.

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Definitions:

Correlation Coefficient

A statistic in which the covariance is scaled to a value between −1 (perfect negative correlation) and +1 (perfect positive correlation).

Minimum Variance Portfolio

A portfolio constructed to achieve the lowest possible volatility or variability in returns among a set of potential assets.

Standard Deviation

A statistical measure that quantifies the dispersion or variability of a set of data points or investment returns around their mean (average).

Two-asset Portfolio

A portfolio comprising only two assets, used to study the principles of diversification and risk-return trade-off in finance.