87. In capital asset pricing model, covariance between stock and market is divided by variance of market returns is used to calculate

by
A) sales turnover of company
B) risk rate of company
C) beta coefficient of company
D) weighted mean of company
✅ ANSWER: C
In capital asset pricing model, covariance between stock and market is divided by variance of market returns is used to calculate beta coefficient of company. beta of a company measures how the company’s equity market value changes with changes in the overall market. It is used in the Capital Asset Pricing Model (CAPM) to estimate the return of an asset.

81. What are the correct statements?

by
A) Bancassurance model can either be a bank forming an insurance company on its own or acting as an agent for another Insurance company without capital participation
B) Such an agency of bank acting for an insurer is known as corporate agency
C) A commercial bank is not barred from acting as an agent for insurance companies
D) All of the above
✅ ANSWER: D
All the statements are correct.
Bancassurance model can either be a bank forming an insurance company on its own or acting as an agent for another Insurance company without capital participation, Such an agency of bank acting for an insurer is known as corporate agency and A commercial bank is not barred from acting as an agent for insurance companies.

117. Term insurance is mainly suitable for which of the following needs?

by
A) Tax planning
B) Savings
C) Disease
D) Income replacement
✅ ANSWER: D
Term insurance is mainly suitable for income replacement.
Under regular term plans, the amount is paid as lump sum in the event of death of the policyholder. Under income replacement term plans, the sum assured is not paid in lump sum, but as monthly payout for a fixed number of years. This monthly payout takes away the pressure to generate income from your investment.

115. Statistical method used to measure average change in dependent variable, with respect to change of one unit in independent variable is called

by
A) times series method
B) time horizon method
C) aggression method
D) regression method
✅ ANSWER: D
Statistical method used to measure average change in dependent variable, with respect to change of one unit in independent variable is called regression method. Regression analysis is a set of statistical processes for estimating the relationships among variables.