LOMA 371 Exam QUESTIONS WITH COMPLETE 100% VERIFIED SOLUTIONS 2024/2025

LOMA 371 Exam QUESTIONS WITH COMPLETE 100% VERIFIED SOLUTIONS 2024/2025 Return on Equity (ROE) (measures operating efficiency) - Correct Answer = Net Income / Owners' Equity or = (Revenues - Expenses) / Owners' Equity Required Rate of Return - Correct Answer = Risk-free rate of return + Risk premium* (* this serves as the incentive for an investor to pursue a specific investment opportunity) Minimum Required Assets - Correct Answer = Minimum Required Reserves + Minimum Required Capital Credit Risks - Correct Answer default risk counterparty risk Market Risks - Correct Answer equity risk interest-rate risk reinvestment rate risk liquidity risk currency risk Underwriting Risks - Correct Answer pricing risk policyholder behavior risk Operational Risks - Correct Answer distribution risk human resources risk technology risk business process risk business partner risk