Assume that you have $100,000 invested in a stock that is returning 14%, $150,000 invested in a stock that is returning 18%, and $200,000 invested in a stock that is returning 15%. What is the expected return of your portfolio? A) 15.67% B) 14.97% C) 13.25% D) 15.78% ANSWER D
Date: September 19th, 2020
The major difference between the dwelling coverage (Part A) of the Homeowners 2 (Broad From) policy and the Homeowners 3 (Special Form) policy is that A) the HO-3 provides open perils (“all risks”) coverage and the HO-2 provides named-perils coverage. B) the HO-3 provides actual cash value coverage, the HO-2 provides replacement cost coverage. C) […]
Date: September 19th, 2020
An analyst is evaluating two companies, A and B. Company A has a debt ratio of 50% and Company B has a debt ratio of 25%. In his report, the analyst is concerned about Company B’s debt level, but not about Company A’s debt level. Which of the following would best explain this position? A) […]
Date: September 19th, 2020
Which of the following statements about the Homeowners 3 policy is (are) true? I. Losses to the dwelling are always settled on an actual cash value basis. II. Coverage on personal property is limited to $5,000. A) I only B) II only C) both I and II D) neither I nor II ANSWER […]
Date: September 19th, 2020
Which of the following statements about the Homeowners 8 policy is (are) true? I. Losses to the dwelling are settled on a replacement cost basis if the dwelling is insured for its full market value. II. It is designed primarily for expensive, newer, dwellings. A) I only B) II only C) both I and II […]
Date: September 19th, 2020
Persons insured under Section I of the Homeowners 3 policy include which of the following? I. A spouse of the named insured if living in the same household II. The named insured’s children who are under age 24 and who are full-time college students A) I only B) II only C) both I and II […]
Date: September 19th, 2020
You borrow $30,000 and agree to pay it off with one lump sum payment of $40,000 in 6 years. What annual rate of interest will you be charged? What will be an ideal response? ANSWER 4.91%
Date: September 19th, 2020
Which of the following statements about eligibility requirements for homeowners insurance is (are) true? I. A contract can be written on a twenty-unit apartment complex as long as the tenants are families. II. Separate forms are available for renters and condominium owners. A) I only B) II only C) both I and II D) neither […]
Date: September 19th, 2020
Ben lives in a state that has a no-fault auto insurance law. Another motorist failed to yield the right of way, and hit his car. Ben filed a claim with his own insurer. He also contacted a lawyer to discuss suing the other driver. The lawyer told Ben that while lawsuits resulting from auto accidents […]
Date: September 19th, 2020
Your parents are complaining about the price of items today compared to what they cost years ago. If an automobile that cost $12,000 in 1980 costs $40,000 in 2010, calculate the annual growth rate in the automobile’s price. What will be an ideal response? ANSWER 4.26%, based on PV = $12,000; FV = […]
Date: September 19th, 2020
