Which of the Following Is Aninsurer That Agrees to Assume

question 30

Multiple Choice

Which of the following is aninsurer that agrees to assume financial responsibility for losses that may result from an insured risk?

• A)Financial advisor
• B)Futo manufacturer
• C)Homeowner
• D)Policyholder
• E)Insurance company

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Definitions:

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Survivorship bias is the logical error of concentrating on the entities or people that made it past some selection process and overlooking those that did not, often leading to false conclusions.

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The process of using statistical techniques to extract and identify patterns, relationships, or information from large datasets.

Active Portfolio Management

The strategy of making buy and sell decisions of investment portfolio holdings, aiming to outperform certain benchmarks.

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An investment theory that proposes optimizing the expected return for a given amount of portfolio risk, or alternatively minimizing risk for a given level of expected return, through diversification.