If you are driving an older car, it may be worthwhile for you to A) drop your family auto policy if state law permits. B) drop your collision coverage. C) drop only your other-than-collision. D) drop both your collision and other-than-collision coverage. ANSWER D
Date: September 19th, 2020
Determine the WACC for Cranston Retail Inc. the firm has a before-tax cost of debt of 6.50%, a cost of equity of 11.50%, and a tax rate of 30.00%. The firm finances 40% of its assets with debt and 60% with equity. Further the risk-free rate is 3.00% and the firm has a beta of […]
Date: September 19th, 2020
Statistical correlation studies of returns of the three key financial assets indicates that A) there is strong positive correlation among their returns. B) it makes sense to hold Treasury bonds and Treasury bills together, but not stocks. C) holding a portfolio of all three assets increased return and decreased risk. D) there is rather poor […]
Date: September 19th, 2020
With participating life insurance you can lower your premiums by changing your lifestyle. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
After age 70-1/2, withdrawals from a traditional IRA must be scheduled to deplete the fund by your or your spouse’s life expectancy. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Given a verbal threshold in state insurance law, individuals may sue for A) reimbursement for physical injuries that are more severe than those that satisfy this definition. B) reimbursement for physical injuries that are less severe than those that satisfy this definition. C) slanderous remarks that are more severe than those that satisfy this definition. […]
Date: September 19th, 2020
You must pay income taxes on the dividends received from participating life policies. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Which of following statements concerning health savings accounts (HSA) is incorrect? A) Your contributions are tax deductible whether or not you itemize. B) Employer contributions are not included in your gross income. C) Amounts in the account at the end of the year are forfeited. D) Funds in the account may be used as a […]
Date: September 19th, 2020
Which of the following statements concerning Collision Damage Waivers (CDW) is false? A) CDWs waive the rental firm’s right to charge you for damage to the rental car. B) CDWs are often a low-cost worthwhile purchase when you rent a car. C) CDWs are issued by auto rental firms and not by commercial insurance companies. […]
Date: September 19th, 2020
The returns on Asset A are strongly, positively correlated with Asset B’s returns; thus, holding the two assets together will A) significantly reduce portfolio risk. B) significantly increase portfolio risk. C) have little or no effect on portfolio risk. D) significantly increase portfolio return. ANSWER C
Date: September 19th, 2020
