259. Method and model used to analyze relationship between rates of return and risk is classified as

by
A) capital asset pricing model
B) portfolio asset pricing model
C) asset market pricing model
D) portfolio pricing model
✅ ANSWER: A
Method and model used to analyze relationship between rates of return and risk is classified as capital asset pricing model. The Capital Asset Pricing Model (CAPM) is a model that describes the relationship between the expected return. The return on the investment is an unknown variable that has different values associated with different probabilities. and risk of investing in a security.

254. A security plan begins with a(n) is ______.

by
A) security policy
B) risk assessment
C) implementation plan
D) security organization
✅ ANSWER: B
A security plan begins with a risk assessment. Risk assessment is a term used to describe the overall process or method where you: Identify hazards and risk factors that have the potential to cause harm (hazard identification). Analyze and evaluate the risk associated with that hazard (risk analysis, and risk evaluation).

251. As per IRDA, which of the following non-traditional products are permitted to be sold?

by
A) Variable insurance plans
B) Unit Linked insurance plans
C) Both A & B
D) None of the above
✅ ANSWER: C
As per IRDA, Variable insurance plans and Unit Linked insurance plans non-traditional products are permitted to be sold. Variable life insurance is a permanent life insurance policy with an investment component. The policy has a cash value account, which is invested in a number of sub-accounts available in the policy. Unit linked insurance plan(ULIP) is a market-linked product that aggregates the very best of investment and insurance. It is a plan which is linked to the capital market and offers flexibility to invest in equity or debt funds as per risk appetite.

244. Package which consists of two or more products to be sold for single price, but components of products in package have separate stand-alone price is called

by
A) step down product
B) dual mix product
C) bundled product
D) reciprocal product
✅ ANSWER: C
Package which consists of two or more products to be sold for single price, but components of products in package have separate stand-alone price is called bundled product. A bundled product is a package of two or more stand-alone products sold together for a single cost.

275. Net present value is a popular method which falls

by
A) With in non- discount cash flow method
B) With in discount cash flow method
C) Equal With in non- discount cash flow method
D) No discount cash flow
✅ ANSWER: B
Net present value is a popular method which falls with in discount cash flow method. Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based on its future cash flows.