bpdulog

I am not sure that the above is essentially correct = not according to CFA at least.

the earlier statement - this is how CFA wants you to think

1. human capital is more volatile, so riskier - need to have a higher discount rate.
life insurance is a substitute for hc -> so based on the higher discount rate - you would need to have lower of it.

2. your financial capital is less volatile, so need to have it invested in low volatile securities (bond).

CP