What is Hometown Insurer's investment income ratio?

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Earned premiums $4,000,000
Written premiums $5,000,000
Net investment income $1,000,000
Incurred losses $3,000,000
Incurred underwriting expense $2,000,000

What is Hometown Insurer's investment income ratio?

A. 10%
B. 20%
C. 25%
D. 50%

Answer: C. 25%

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