Question
According to the CAPM model, Expected Return = Risk free
rate + Risk premium. Here, what does the risk free rate compensate the investor for?Solution
The CAPM compensates investors for the time value of their money. In theory, the risk free interest rate is the minimum return an investor expects for any investment because he will not accept additional risk unless the potential rate of return is greater than the risk-free rate. In practice, risk free rate does not exist because even the safest investments carry a very small amount of risk. However, the long term G-sec rate is used as a proxy to risk-free rate of return (in India 10 year G-sec rate is used as risk free rate).
Which of the following person is basically the representative of the customer and can sell the policies of more than one insurer?
__________ in insurance is the splitting or spreading of risk among multiple parties.
The “Malhotra Committee” was established to:
The contractual term for the premium in an insurance contract is known as:
Which of the following is NOT a duty of the insured in case of a loss?
In relation to insurance sector, what is the full form of FPR?
What is NOT a common express condition in an insurance policy?
What is the Fee paid to an agent or insurance salesperson as a percentage of the policy premium?
What is a form of non-proportional reinsurance?
The section of the policy that outlines what is NOT covered is called:
