How does insurance-linked securities increasean investors return, without increasing risk ?Adding insurance-linked securities to a portfolio can increase an investor's return without increasing its risk becausea) The investor takes pnly a specifically defined insurable riskb) The investor receives a premium rate of returnc)A secondary market exists for the securitiesd) Insurable risk does not correlate with other types of investment risk

Insurance linked securities are financial instruments whose value is primarily based on insurance…

Adding insurance-linked securities to a portfolio can increase an investor's return without increasing its risk becaus a) The investor takes pnly a specifically defined insurable risk b) The investor receives a premium rate of return c)A secondary market exists for the securities d) Insurable risk does not correlate with other types of investment risk

Adding insurance-linked securities to a portfolio can increase an investor's return without increasing its risk becaus a) The investor takes pnly a specifically defined insurable risk b) The investor receives a premium rate of return c)A secondary market exists for the securities d) Insurable risk does not correlate with other types of investment risk

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 8QTD

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