Only individual investors participate in public offerings, while institutional investors participate in private placements. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
You are going to invest all of your funds in one of three projects with the following distribution of possible returns: PROJECT 1 PROJECT 2 Probability Return Standard Deviation Beta Probability Return Standard Deviation Beta 50% Chance 22% 12% 1.1 30% Chance 36% 19.5% 1.0 50% Chance -4% 40% Chance 10.5% 30% Chance -20% PROJECT […]
Date: September 19th, 2020
Cal is renting an apartment. Which homeowners policy is specially designed to insure renters? A) HO-2 B) HO-3 C) HO-4 D) HO-6 ANSWER Answer: C
Date: September 19th, 2020
Which of the following statements about the appraisal clause in the Homeowners 3 policy is (are) true? I. It is used to determine a value for personal property when the policy is issued. II. It is used to help settle disputes over the amount of a loss after a loss has occurred. A) I only […]
Date: September 19th, 2020
The financial manager most directly responsible for producing the company’s financial statements and directing its cost accounting functions is the A) treasurer. B) chief financial officer. C) controller. D) vice president-financier. ANSWER C
Date: September 19th, 2020
Under the Homeowners 3 policy, all of the following are options of the insurer for settling claims EXCEPT A) paying the claim in cash. B) replacing the property. C) repairing the property. D) paying the claim with insurance company stock. ANSWER Answer: D
Date: September 19th, 2020
Cash management is typically the responsibility of the: A) chief executive officer. B) vice president of production and operations. C) financial manager. D) company internal auditor. ANSWER C
Date: September 19th, 2020
You are thinking of adding one of two investments to an already well- diversified portfolio. Security A Security B Expected Return = 14% Expected Return = 16% Standard Deviation of Standard Deviation of Returns = 16% Returns = 20% Beta = 1.2 Beta = 1.2 If you are a risk-averse investor, which one is the […]
Date: September 19th, 2020
How does compound interest differ from simple interest? What will be an ideal response? ANSWER Compound interest occurs when interest paid on the investment during the first period is added to the principal; then, during the second period, interest is earned on this new sum. The situation in which interest is earned on […]
Date: September 19th, 2020
Which of the following is (are) included among the duties of an insured following a loss covered under the Homeowners 3 policy? I. To file a proof of loss within a specified time period after the insurer’s request II. To prepare an inventory of damaged personal property A) I only B) II only C) both […]
Date: September 19th, 2020
