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6.1.Ferrari
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Ferrari Total Return Basic Equation
T/S = (I/A)(1 + R/S) + (U/P)(P/S)
Total return is driven by both investment return on assets and UW profitability relative to premium
Ferrari Role of Reserves as Source of Investable Capital
T/S = (I/A) + (R/S)(I/A + U/R)
3 specific examples of relationship btwn ratios in Ferrari
Incr in P/S ratio will likely lead to lower investment return on assets
P/S ratio will move in the same direction as UW profit
UW profits and investment return on assets will move in the same direction
Author
Exam9
ID
68277
Card Set
6.1.Ferrari
Description
Ferrari
Updated
2011-02-23T02:35:20Z
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