A unit investment trust is similar to a mutual fund, except shares are bought in units and the trust is more aggressively managed. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Deductibles serve to A) enhance the profits of the insurance companies by denying payments on small claims. B) dissuade customers who are at high risk from purchasing insurance. C) reduce court awards for damages. D) lower premiums by eliminating the cost of handling many small claims. ANSWER D
Date: September 19th, 2020
The most popular UITs are those investing in real estate. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The co-insurance provision on homeowners’ policies A) is meant to eliminate homeowners claims for small losses. B) means that the homeowner will receive less than 100% reimbursement on all losses. C) implies that more than one insurance company may be responsible for the losses. D) provides an incentive for homeowners to insure their homes for […]
Date: September 19th, 2020
A risk-adjusted rate of return for a mutual fund uses the fund’s beta weight. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following policies can be sold only by a registered securities dealer? A) Universal life B) Variable life C) Whole life D) Term life ANSWER B
Date: September 19th, 2020
A fund with a beta of 0.6 earned a return of 8%. During the same period of time the market return was 12%, which means the fund manager outperformed the market. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
If you are comparing fund expenses for two funds with different objectives, it is better to reference the expenses against each fund’s earnings rather than its assets. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
A “rollover” occurs when pension accumulations are A) paid out to retirees. B) paid out to terminated employees. C) paid out to the dependents of a deceased employee. D) transferred from one tax-deferred fund to another. ANSWER D
Date: September 19th, 2020
EVA is a multi-period rather than a one-period measure of true economic performance Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
