Over the period 1926 to 2014, the standard deviation of returns has been the greatest for which of the following? A) common stocks B) Treasury bills C) corporate bonds D) government bonds ANSWER A
Date: September 19th, 2020
A well-diversified portfolio includes investments in 50 securities. The portfolio’s systematic risk is likely to be about A) 50% of the total risk. B) 25% of the total risk. C) 40% of the total risk. D) zero because risk is eliminated with a portfolio of 50 securities or more. ANSWER C
Date: September 19th, 2020
How much money must you pay into an account at the beginning of each of 20 years in order to have $10,000 at the end of the 20th year? Assume that the account pays 12% per year, and round to the nearest $1. A) $111 B) $139 C) $1,195 D) $124 ANSWER D
Date: September 19th, 2020
Generally Accepted Accounting Principles (GAAP) is a set of principle-based accounting standards established by the Financial Accounting Standards Board (FASB). Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
What was the average annual rate of return on common stocks during the period 1926 to 2014? A) 10.1% B) 18.6% C) 9.5% D) 15.4% ANSWER A
Date: September 19th, 2020
Which type of business organization is the best for attracting new equity capital? A) Sole proprietorship B) Limited liability corporation C) General partnership D) A public corporation ANSWER D
Date: September 19th, 2020
Which of the following is an advantage of the general partnership form of business organization? A) double taxation B) limited liability of business owners C) low cost of formation D) easy ability to raise capital ANSWER C
Date: September 19th, 2020
All of the following are ISO commercial crime coverage exclusions EXCEPT A) dishonest acts committed by a named insured or partner of the named insured. B) indirect loss resulting from covered losses. C) theft committed by an employee of the named insured. D) losses from unauthorized trading in stocks and bonds. ANSWER Answer: […]
Date: September 19th, 2020
Which of the following statements is (are) true with respect to financial institution bonds? I. Fidelity coverage covers losses resulting from the dishonest acts of employees. II. Financial institutions usually insure their crime exposures through financial institutions bonds. A) I only B) II only C) both I and II D) neither I nor II c […]
Date: September 19th, 2020
Bernice is an underwriter. She is reviewing a commercial crime coverage application. The coverage will be written using the discovery form. Bernice is concerned that a large undiscovered loss may exist prior to the policy’s inception date. Which provision should Bernice add to the policy to protect the insurer against liability for such previous losses? […]
Date: September 19th, 2020
