The portfolios of property and casualty insurance companies are generally concentrated in

Question

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Property and casualty insurance companies need to have sufficient liquidity to pay claims, so their portfolios typically consist of liquid assets such as cash and short-term investments. Mutual funds and primary securities may not provide the necessary liquidity, while U.S. Treasury bonds may not offer enough yield to meet the companies' investment objectives.

The Portfolios of Property and Casualty Insurance Companies Are Generally