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Investment Decisions in a Developing Economy: A Case Study of Insurance Business in Nigeria

It has been hypothesized that the overall investment decision of the insurance industry is a positive function of their level of funds mobilization (represented by total premiums), capital base, rate of economic growth, rate of return on Government treasury investments, level of investment in the previous years, and profitability of operations.The inclusion of the rates on Government treasury investment is predicated on the fact that much of insurance funds are restricted by law from being plunged into Government securities in the money market. Our approach in this study, however, is to relax …

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