The total investment return is shared between policyholders
No attempt is made to distinguish between investments of previous years over current investments
This method gives homogenized rates of return
None of the above
✅ The correct answer is D.
All of the above are correct with regards to the portfolio method. The portfolio method is an accounting method that credits all funds on the specified current rate of interest, regardless of when the money was placed in the account.
All of the above are correct with regards to the portfolio method. The portfolio method is an accounting method that credits all funds on the specified current rate of interest, regardless of when the money was placed in the account.