An Actuarially Fair Return Means

question 32

Multiple Choice

An actuarially fair return means

• A) returns on investments are indexed to the stock market.
• B) returns on investments have to be positive.
• C) benefits received,on average,would be equal to the premiums paid.
• D) premiums for insurance are generally paid by the government.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and generating profit.