Define insurance company that takes on the greater risks, Financial Management

Assignment Help:

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 in opposition to by property and casualty companies are very much less predictable as compared to are the risks insured by life insurance companies.  Hurricanes, fires, floods, and trial judgments are all very difficult to predict than the number of sixty-year-old females who will die this year among a large number in this risk class.  The meaning of this is that property and casualty insurance companies should keep more liquid assets than do life insurance companies.


Related Discussions:- Define insurance company that takes on the greater risks

Capital asset pricing model - working with beta, Your research assistant we...

Your research assistant went home early (rock concert related illness) and left you with the following table listing the expected returns, standard deviation, correlation with the

Budget, what are the advantages and disadvantages of incremental budgeting?...

what are the advantages and disadvantages of incremental budgeting?

What is the value of the security to an investor, What is the Value of the ...

What is the Value of the security to an investor Value of the security to an investor is directly proportional to the return that he is expected to get from that security. Hig

Advantage of weighted average cost of capital, Advantage of Weighted Averag...

Advantage of Weighted Average Cost of capital 1) Straight Forward and logical: Weighted Average ost of Capital defines the oveall cost of capital as the sum of the cost of t

Find the expected dividend - stocks, You are considering the purchase of so...

You are considering the purchase of some shares of PECO Inc. common stock which paid a dividend of $1.50 today. You expect the dividend to grow at the rate of 7% per year for the n

Features of capital budgeting decisions, Q. Features of Capital Budgeting D...

Q. Features of Capital Budgeting Decisions? Features of Capital Budgeting Decisions:- Moneys are invested in long-term assets. Moneys are invested in present times i

Calculate the weighted average cost, XYZ Energy Solutions plc (XYZ) has spe...

XYZ Energy Solutions plc (XYZ) has spent €12m designing and developing a new generation of domestic air source heat pumps. These new domestic heat pumps can easily be fitted to exi

Case study - credit-linked notes, Case Study - Credit-Linked Notes Cred...

Case Study - Credit-Linked Notes Credit linked notes are assets issued by financial institutions which have exposure to the credit risk of a reference Issuer . These notes pay

Explain the cost of capital across countries, Question 1 Cost of capita...

Question 1 Cost of capital is the minimum rate of return required by a firm on its investment in order to provide the rate of return by its suppliers of capital. Explain the co

Fm, challenges that the finance manager face in fulfilling the managerial f...

challenges that the finance manager face in fulfilling the managerial function

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd