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Which type of insurance company generally takes on the greater risks: a life insurance company or a property and casualty insurance company?
The risks protected against by casualty and property companies are much less predictable than are the risks insured by life insurance companies. Fires, floods, Hurricanes and trial judgments are all much more difficult to predict than the number of sixty-year-old females who will die this year among a large number in this risk class. This signifies that casualty and property insurance companies must keep more liquid assets than do life insurance companies.
The Option-Adjusted Spread (OAS) is a measure of the yield spread (expressed in basis points) which can be used to convert differences between the values an
Question 1: (a) Discuss the main limitations of using changes in national income as an index of economic welfare. (b) What are the alternatives measures and issues that sho
Chain Index Numbers So far, we have constructed index numbers with a fixed base. Sometimes, comparison between the current/given year and the base year becomes meaningless once
Definition of cost of capital In analyzing the cost of capital it is presumed that business risk of the firm remains unchanged (i.e., that projects accepted don't affect the va
Q. What do you mean by Average Cost and Marginal cost? Average Cost and Marginal cost: the average cost is the combined cost as explain above, but for the difference in the for
Explain the meaning of Buy-ins This is when third party management team make a takeover bid and then run business themselves. Finance sources are same as to buy-o
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Q. Show Inter-Corporate Deposits? Inter-Corporate Deposits: Inter-corporate lending/borrowing or deposits (ICDs) is a popular short-term investment alternative for companies in
In 2005, Mr. Gordon Brown's brought up a plan of action to help reduce poverty and boost economic development in Africa. The three essential elements of the 2005 development plan
what is the cost of capital and advantages of it?
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