In measuring value, the firm’s focus should be on: A) cash flow. B) accounting profits. C) time value of money. D) earnings per share. ANSWER A
Date: September 19th, 2020
Investment banking firms are prohibited from selling securities due to conflicts of interest. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The syndicate can be thought of as a wholesaler of securities and the dealer organization as a retailer of securities. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
A credit-based score that insurers claim is highly predictive of future claims costs is an individual’s A) combined ratio. B) loss ratio. C) insurance score. D) underwriting score. ANSWER Answer: C
Date: September 19th, 2020
No-fault benefits are provided by adding an endorsement to the auto insurance policy. What is this endorsement typically called? A) uninsured motorists coverage B) personal injury protection coverage C) nonowned vehicle liability coverage D) add-on benefits coverage ANSWER Answer: B
Date: September 19th, 2020
New Jersey’s dollar-a-day auto insurance coverage is limited to A) elderly individuals. B) Medicaid recipients. C) drivers under age 25. D) high-risk drivers. ANSWER Answer: B
Date: September 19th, 2020
John won the lottery on Monday and can take either $50,000 per year for 20 years, or $500,000 today. Bill won the same lottery on Tuesday and has the same options for receiving the cash. A well respected financial advisor is hired by both John and Bill. The advisor recommends that John take the $50,000 […]
Date: September 19th, 2020
Short-term United States Treasury bills are widely used as proxies for risk-free assets, yet the returns on these T-bills are consistently greater than zero. Is this consistent with the concept of a risk-return trade-off? What will be an ideal response? ANSWER Yes. Investors also require a return for delaying consumption as well as […]
Date: September 19th, 2020
Some states have enacted laws which prohibit uninsured drivers from suing a negligent driver for noneconomic damages, such as pain and suffering. These laws are called A) comparative negligence laws. B) “no pay, no play” laws. C) financial responsibility laws. D) unsatisfied judgment laws. ANSWER Answer: B
Date: September 19th, 2020
Stock W has an expected return of 12% with a standard deviation of 8%. If returns are normally distributed, then approximately two-thirds of the time the return on stock W will be A) between 4% and 20%. B) between -4% and 28%. C) between 12% and 20%. D) between 8% and 12%. ANSWER […]
Date: September 19th, 2020
