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An insurance company’s projected loss ratio is 77.5 percent, and its loss adjustment expense ratio is 12.9 percent.
An insurance company’s projected loss ratio is 77.5 percent, and its loss adjustment expense ratio is 12.9 percent. It estimates that commission payments and dividends to policyholders will add another 16 percent. What is the minimum yield on investments required in order to maintain a positive operating ratio? (
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