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AFE · Question #171

Many companies have developed an asset/liability management approach that is founded on understanding product liabilities. Mortgages meet the primary objective of maintaining:

The correct answer is C. A tight asset/liability match with a well-diversified core of investments. See the full explanation below for the reasoning.

Question

Many companies have developed an asset/liability management approach that is founded on understanding product liabilities. Mortgages meet the primary objective of maintaining:

Options

  • AA tight asset/liability match
  • BA well-diversified core of investments
  • CA tight asset/liability match with a well-diversified core of investments.
  • DReal estate lending by insurance companies

How the community answered

(42 responses)
  • A
    2% (1)
  • B
    7% (3)
  • C
    79% (33)
  • D
    12% (5)

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