Exhibit 7-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 97

Multiple Choice

Exhibit 7-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) $$\begin{array} { c c c c } \text { Period } & \begin{array} { c } \text { Return } \\\text { of Radtran } \\\text { (Percent) }\end{array} & \begin{array} { c } \text { Ppecific Index } \\\text { (Percent) }\end{array} & \begin{array} { c } \text { True } \\\text { General Index } \\\text { (Percent) }\end{array} \\\hline 1 & 10 & 12 & 15 \\2 & 12 & 10 & 13 \\3 & - 10 & - 8 & - 8 \\4 & - 4 & - 10 & 0\end{array}$$
-Refer to Exhibit 7-3. What is the average return for Radtron?

• A) 1%
• B) 2%
• C) 3%
• D) 4%
• E) 5%

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Definitions:

Reformation

The process of modifying a legal document or agreement to correct errors or reflect the true intentions of the parties involved.

Written Insurance Policy

A formal document issued by an insurer that outlines the terms, coverage, and conditions of the insurance agreement.

Contract Term

A period during which a contract is operational and its conditions are applicable.

Automobile Insurance

A contract between an individual and an insurance company to cover financial loss related to car incidents, such as accidents, theft, or damage.