Which of the following statements about the Linton yield is (are) true?

I. It is based on the assumption that a cash-value policy can be viewed as a combination of insurance protection and a savings fund.
II. It is the average compound annual rate of return required to make the savings deposits in a life insurance policy equal to the policy's guaranteed cash value at the end of a specified period.
A) I only
B) II only
C) both I and II
D) neither I nor II

Answer: C

Business

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