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

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

Answer: C