1043. A risk which is classified as its contribution to risk of portfolio is classified as

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classified risk
contributed risk
irrelevant risk
relevant risk
✅ The correct answer is D.
A risk which is classified as its contribution to risk of portfolio is classified as relevant risk. Relevant risk is the fluctuation of returns caused by the macroeconomic factors that affect all risky assets.

1041. Which of the following forms is not required for settlement of a death claim?

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Declaration of good health
Certificate of cremation/burial
Physician certificate
Death certificate
✅ The correct answer is A.
The following proofs are required for payment of a death claim:
(i) An intimation of death by the nominee or a near relative.
(ii) Proof of age if not already admitted.
(iii) Proof of death.
(iv) Doctor’s certificate who attended the deceased during his last illness.
(v) Identity certificate from a reputable person who saw the body of the deceased life assured.
(vi) Certificate of cremation or burial from a reputable person who attended the funeral.
(vii) An employer certificate if any, of the deceased.

“Declaration of good health” is not required to be submitted.

1040. Financial risk is most associated with_______________.

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the use of equity financing by corporations
the use of debt financing by corporations
Equity investments held by corporations
Debt investments held by corporations.
✅ The correct answer is B.
Financial risk is most associated with the use of debt financing by corporations. Financial risk is the risk that a company won’t be able to meet its obligations to pay back its debts. Which in turn could mean that potential investors will lose the money invested in the company. The more debt a company has, the higher the potential financial risk.

1013. Real interest rate and real cash flows do not include

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equity effects
debt effects
inflation effects
opportunity effects
✅ The correct answer is C.
Real interest rate and real cash flows do not include inflation effects. Inflation may or may not result in an increase in production. As long as the economy does not reach the full employment stage, inflation has a favorable effect on production. Usually, as the price level increases, profits increase too.