2. What did Andrew Carnegie believe some people succeed in business and others don't?

- The business world selects for people with natural talent.

- The business world selects for people who get lucky opportunities.

3. The main difference between Value at Risk and Stress Testing is:

- Value at Risk takes a non-statistical approach, as opposed to Stress Testing.

- Stress Testing takes a non-statistical approach with its scenarios analysis.

4. According to the Capital Asset Pricing Model (CAPM), a security with:

- An alpha of zero is able to generate a return which greater than the market return.

- A positive alpha is considered underpriced, since the security outperforms the market.

6. If an insurance company has 10000 policies, and each has 0.1 probability of making a claim, what is the standard deviation of the fraction of policies which result in a claim?

Enter answer here

7. Why was the National Association of Insurance Commissioners created?

- To suggest laws that would decrease the complexity of insurance regulation.

- To suggest laws that would strengthen the insurance industry