2017 fall #13
Hi, per the solution, "high proportion of stock relative to bonds...", is there a rule of thumb or threshold regarding how much stock relative to bonds or total asset should be held? Thank you in advance.
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Hi, per the solution, "high proportion of stock relative to bonds...", is there a rule of thumb or threshold regarding how much stock relative to bonds or total asset should be held? Thank you in advance.
Comments
Bonds generally account for 50-60% of an insurer's assets. In this question, they account for less than 30% of total assets, which makes it problematic.