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This question belongs to Commerce Insurance

Insurance

?

Which of the following is incorrect with regards to portfolio method?

A) The total investment return is shared between policyholders B) No attempt is made to distinguish between investments of previous years over current investments C) This method gives homogenized rates of return D) None of the above

Answer & Solution

Correct Answer: Option D

All of the above are correct with regards to the portfolio method. The portfolio method is an accounting method that credits all funds on the specified current rate of interest, regardless of when the money was placed in the account.

Question posted by Examveda

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