Sandra, a licensed producer and registered representative, is explaining the advantages and disadvantages of fued, indexed, and variabie annutes to Karen, a $63-$year old, recently widowed client. Which of the following would Sandra characterise as a usique disadvantage of variationnutes?

A$)$ Investment risk assumed by the insurance company

B$)$ Investment risk retained by the contract owner

Atti

C$)$ A possible hedge against inflation

D$)$ A guaranteed maximum interest rate $($rate cap$)$