2215. Which of the following portfolios has the least reduction of risk?

A portfolio with securities all having positive correlation with each other
A portfolio with securities all has zero correlation with each other
A portfolio with securities all having negative correlation with each other
A portfolio with securities all has skewed correlation with each other
✅ The correct answer is A.
A portfolio with securities all having positive correlation with each other has the least reduction of risk. A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds.

2218. A policy is affected under the MWP Act. If the policyholder does not appoint a special trustee to receive and administer the benefits under the policy, the sum secured under the policy become payable to the _________

Next of kin
Official trustee of the State
Insurer
Insured
✅ The correct answer is B.
A policy is affected under the MWP Act. If the policyholder does not appoint a special trustee to receive and administer the benefits under the policy, the sum secured under the policy become payable to the Official trustee of the State.

2227. Setup cost is a type of __________ cost.

fixed
variable
semi variable
carrying
✅ The correct answer is A.
Setup cost is a type of fixed cost. Setup cost is the cost incurred to get equipment ready to process a different batch of goods. Hence, setup cost is regarded as a batch-level cost in activity based costing. Setup cost is considered to be a non-value-added cost that should be minimized.

2229. While prospecting for selling insurance, approaching the members of a caste or community association will be classified under which of the following?

Immediate group
Natural market
Centers of influence
References and introductions
✅ The correct answer is B.
The easiest people to approach would be one’s family and friends. Also, relatively easy to approach are people with whom we do business; people who work in the food stores, clothing stores, banks, etc. Other such people would be those who know us such as friends, acquaintances, people who belong to the same organisations and so forth. To sum up, these prospects form part of what we call the sales person’s natural market.