Question: Omaha Life, a regional life insurance company, provides all forms of life insurance coverage. The company's actuaries have calculated a 4.5 percent minimum return is necessary to meet its obligations. Omaha Life has $950 million in assets and $750 million in known liabilities. Omaha Life needs assistance in answer the following questions::
a. What should be used as the return objective?
b. What should be the risk tolerance level?
c. Identify one constraint relative to Omaha Life's liabilities and one relative to its regulatory framework.