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What else can I help you with?
Does business insurance raise my premium?
Business insurance is based on two principles: one is your risk and history in the industry, and two is history and risk of your company. If these two items are compromised then your premium will be raised.
Does a risk free asset have a beta of one?
No, a risk-free asset does not have a beta of one. In finance, the beta of an asset measures its sensitivity to market movements, with a beta of one indicating that the asset moves in line with the market. A risk-free asset, such as a Treasury bond, has a beta of zero because it is not correlated with market fluctuations and carries no risk of default.
Where can one find premium insurance?
When you are on the hunt for premium insurance, where to look will depend on the type of insurance you need. If you want premium health insurance you should look for companies like United Health or Wellpoint. If you are in the market for premium life insurance you should try companies like American General, or Allstate.
Which one of the following is a positively sloped linear function that is created when expected returns are graphed against security betas?
The positively sloped linear function that represents the relationship between expected returns and security betas is known as the Security Market Line (SML). In the Capital Asset Pricing Model (CAPM), the SML illustrates how the expected return of a security increases with its systematic risk (beta). The slope of the SML is determined by the market risk premium, which reflects the additional return investors expect for taking on higher risk.
What is the difference between has the risk or takes the risk?
one has the word has in and one has the word takes in Diversifiable risk is the risk which can be mitigated by investing in different companies, different sectors, different assets and also different regions. Here we trying to minimize the risk of huge loss by taking the whole risk against one or few companies/ sectors / assets / regions. Non-Diversifiable risk can not be mitigated at all. This is the risk you are exposed to in individual investment. Every investment holds Market risk, i.e. uncertainity of market moving up or down and respective movement of your investment .
What is an health premium?
Insurance is defined as the equitable transfer of risk from one party to another for a pre-determined fee. A premium is another name for this fee, which the policyholder pays to the insurance company in return for indemnity from healthcare costs.
Foreign exchange risk management?
in reference to trading Foreign exchange risk managemnet would be managing the risk of an individual trade or several trades, one startegy in risk management is to only risk 2% per trade and not loose more then 6% in a month this way managing the total risk to your trading account.
What is the risk in entry global market?
There is no answer to this question in its current form. If you mean the global stock market, then of course there is risk. But you try to minimise this via research. Each of us has a different propensity to risk. Risk and reward have to be intelligently balanced. Right now, you could get around 9-9.5% without almost zero risk. If you are looking for a far higher return on your capital, then the markets or hedge funds are your answer. For safety. any investment portfolio should be balanced. That means not all your eggs in one basket.
What does one receive if they survive the term of a return of premium life insurance policy?
If one survives the term of a return of premium life insurance policy, they are likely to get the sum assured and the interest or bonuses earned over the period. This can be viewed as a way to reduce risk and also invest.
Types of risk faced by banks?
these are the risks that banks face: 1.Operational 2.Market 3.Financial ========== There also additions risks which Regulators look at and expect banks to have addressed. The complete list is: 1. Strategic Risk 2. Regulatory Risk 3. Liquidity Risk 4. Operational Risk 5. Market Risk 6. Foreign Exchange Risk 7. Credit Risk or default Risk ============== For got one other to the above list: Interest Rate Risk
What are the deficiencies of CAPM as an explanation of the relationship between risk and expected return?
One major deficiency of CAPM is that it assumes a linear relationship between risk and expected return, implying that assets with higher risk will always yield higher returns. However, in reality, this relationship may not hold true as investors may require additional compensation for taking on higher risk. Additionally, CAPM relies on the use of a single factor, the market risk premium, to explain all variations in expected returns, which may not adequately capture the complexity of real-world market conditions. Lastly, CAPM assumes that all investors have the same expectations and agree on the same inputs, which may not reflect the diverse range of beliefs and opinions in the market.
What does a toppish market mean?
When a market seems to be close to its top. One can identify it in a bull market, when positive news arise and the market does not react upwards.
