Mf3. (a) In relation to the underlying risk insured, explain why the use of funds differs for general insurance companies and life insurance companies.    (b) Insurance companies manage funds as a part of the business of providing insurance. Describe another type of managed fund discussed in the course and explain how this differs from an insurance company. In your answer give an example of a source and use of funds for this managed fund.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Mf3.

(a) In relation to the underlying risk insured, explain why the use of funds differs for general insurance companies and life insurance companies. 

 

(b) Insurance companies manage funds as a part of the business of providing insurance. Describe another type of managed fund discussed in the course and explain how this differs from an insurance company. In your answer give an example of a source and use of funds for this managed fund.

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