Reading 20: Human Capital, Asset Allocation, and Life Insur following, insurance, positive, demand, black

mayanfang1

Q8. Which of the following has a positive relationship with the demand for life insurance?

A)   An investor’s aversion to risk.

B)   The level of financial wealth.

C)   The volatility of the investor’s human capital.

Q9. Which of the following statements is least accurate regarding human capital?

A)   If an investor’s human capital is equity-like they should allocate a greater amount of their financial capital to fixed income investments.

B)   The demand for life insurance will increase if human capital is bond-like.

C)   When possible, one should maximize the correlation of human and financial capital.

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