You bought a racehorse that has had a winning streak for six years, bringing in $250,000 at the end of each year before dying of a heart attack. If you paid $1,155,720 for the horse 4 years ago, what was your annual return over this 4-year period? A) 8% B) 33% C) 12% D) 18% […]
Date: September 19th, 2020
Beginning with an investment in one company’s securities, as we add securities of other companies to our portfolio, which type of risk declines? A) systematic risk B) non-diversifiable risk C) market risk D) unsystematic risk ANSWER D
Date: September 19th, 2020
Which of the following statements is true with regard to the kidnap/ransom extortion coverage available through ISO’s Commercial Crime Coverage program? A) Ransom is covered only if the hostage is returned alive. B) Money surrendered as a result of an extortion threat is covered. C) The kidnap/ransom coverage is limited to the direct loss associated […]
Date: September 19th, 2020
Which of the following statements is (are) true with respect to the kidnap/ransom and extortion coverage available through ISO’s Commercial Crime Coverage program? I. It covers the loss of money that is paid for ransom if someone is kidnaps. II. It covers some indirect costs association with a kidnapping, such as hiring a hostage negotiator. […]
Date: September 19th, 2020
Metro City would like a pedestrian bridge constructed across Big Creek. The city will accept bids on the project until a specified date. Bidders must submit a bid bond that guarantees if the bid is accepted, the bidder will sign the construction contract and furnish a bond that guarantees the construction work will be completed […]
Date: September 19th, 2020
White’s World Wide Delivery Inc. has an unlevered beta = 1.25, a debt-equity ratio of 0.30, a tax rate of 0.20, and a levered beta = 1.55. If the firm increased the debt-equity ratio to 50%, what would be the impact on the levered beta? A) Increase to a value of 1.75 B) No change […]
Date: September 19th, 2020
The income statement for Simpson, Inc. indicates that tax expense was $30,000. The balance sheet indicates that taxes payable for the same year increased by $5,000. What amount did Simpson, Inc. actually pay in taxes during this year? A) $20,000 B) $25,000 C) $15,000 D) Cannot be determined without the cash balance ANSWER […]
Date: September 19th, 2020
Which of the following statements regarding limited partnership is TRUE? A) There is no limit on a limited partner’s liability. B) A limited partner is not liable until all the assets of the general partners have been exhausted. C) A general partner’s liability is limited by the amount of their investment. D) A limited partner’s […]
Date: September 19th, 2020
Which of the following statements about the commercial crime insurance policy is true? A) Loss from the unauthorized disclosure of confidential information is covered. B) Theft committed by the named insured or his/her partners is covered. C) Inventory shortages are only covered if proof of loss depends on an inventory computation or on a profit […]
Date: September 19th, 2020
Two tellers of a Tenth National Bank branch colluded to embezzle $40,000 over a six-month period. State bank examiners detected the embezzlement during a routine bank examination. Tenth National purchased a financial institution bond. Under which of the following insuring agreements is this loss covered? A) Insuring Agreement A—Fidelity B) Insuring Agreement B—On Premises C) […]
Date: September 19th, 2020
