Insurance and Risk Management Paper 19

Bank deposit insurance was set up:

Because their flows of funds are largely contractual, life assurance companies can hold:

By taking out insurance cover an individual:

Corporate bonds have higher yields than government bonds because:

Diversification is one way in which insurance companies can protect themselves against:

Five assets have expected mean returns and variances as follows: (A) 8% 15; (B) 12% 18; (C) 11% 18; (D) 15% 20; (E) 11% 17. Which of these assets will be rejected by all rational risk-averse investors?

Given a current rate of inflation of 3 per cent, and an expected rate of inflation next year of 5 per cent, what increase in nominal wages will workers seek in order to increase their real wage by 2 per cent:

Given a fall in interest rates, the largest price change will occur in:

Government appointed members of the Monetary Policy Committee of the Bank of England are appointed:

If a firm has one million shares in issue, earns profits of £200,000 and operates a retention ratio of 0.4, the dividend per share will be: