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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

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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How does insurance-linked securities increase an investors return, without increasing risk ? Adding insurance-linked securities to a portfolio can increase an investor's return without increasing its risk because 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
Transcribed Image Text:How does insurance-linked securities increase an investors return, without increasing risk ? Adding insurance-linked securities to a portfolio can increase an investor's return without increasing its risk because 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
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