An Individual Will Never Buy Complete Insurance If

question 11

Multiple Choice

An individual will never buy complete insurance if

• A)he or she is risk averse.
• B)he or she is a risk taker.
• C)insurance premiums are fair.
• D)under any circumstances.

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Definitions:

Return on Assets Ratio

A financial ratio that measures how efficiently a company uses its assets to generate profit, calculated as net income divided by total assets.

Total Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets to generate sales revenue.

Net Profit Margin Ratio

A financial measurement that calculates how much of each dollar of revenues is translated into profits after accounting for all expenses, taxes, and interest, expressed as a percentage.

Return on Assets Ratio

A financial ratio indicating how Profitable a company is relative to its total assets, measuring how efficiently a company is using its assets to generate profit.