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Mutual funds and insurance companies are exposed to the following types of risk: Liquidity risk Market risk Insolvency risk Technology risk Explain how their exposures

Mutual funds and insurance companies are exposed to the following types of risk:

  • Liquidity risk
  • Market risk
  • Insolvency risk
  • Technology risk

Explain how their exposures are similar and different with respect to each of these risks. Indicate how regulators try to ensure that these financial institutions properly manage the risks.

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