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
An investment banker assumes underwriting risk in both negotiated purchases and privileged subscriptions with standby agreements. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Which of the following statements is (are) true with respect to the use of credit-based insurance scores as an auto insurance rating factor? I. Insurers claim that drivers who have poor insurance scores are expected to have relatively more accidents. II. The use of insurance scores has been banned as a rating factor in all […]
Date: September 19th, 2020
The goal of most financial managers is to reduce the amount of long-term debt to zero, thus maximizing shareholder wealth. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Which of the following is NOT true regarding mortgaged-backed securities (MBS)? A) The MBS process allows the mortgage bank or other financial institution that made the original mortgage loan to get its money back out of the loan and lend it to someone else. B) Securitization provides liquidity to the mortgage market and makes it […]
Date: September 19th, 2020
