Sharon lives in a state that has a no-fault automobile insurance law. Under the law, an injured person has the right to sue the negligent driver only if the bodily injury claim exceeds a dollar or verbal threshold. The no-fault law in Sharon’s state is a(n) A) pure no-fault plan. B) modified no-fault plan. C) […]
Date: September 19th, 2020
Disadvantages of automobile insurance plans include which of the following? I. High premiums may cause many high-risk drivers to go uninsured. II. Large underwriting profits have resulted in high-risk drivers subsidizing the cost of insurance for good drivers in the voluntary markets. A) I only B) II only C) both I and II D) neither […]
Date: September 19th, 2020
Stock W has the following returns for various states of the economy: State of the Economy Probability Stock W’s Return Recession 10% -30% Below Average 20% -2% Average 40% 10% Above Average 20% 18% Boom 10% 40% Stock W’s standard deviation of returns is A) 20% B) 14%. C) 17%. D) 10%. ANSWER […]
Date: September 19th, 2020
The negotiated purchase is the most prevalent method of securities distribution in the private sector. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
A few states have dual automobile insurance systems. A motorist can pay a higher premium and retain the right to sue under the tort system, or pay a lower premium and be covered under the state’s no-fault law. This dual system is called a A) pure no-fault plan. B) modified no-fault plan. C) “no pay, […]
Date: September 19th, 2020
If managers are making decisions to maximize shareholder wealth, then they are primarily concerned with making decisions that should: A) positively affect profits. B) increase the market value of the firm’s common stock. C) either increase or have no effect on the value of the firm’s common stock. D) Accomplish all of the above. […]
Date: September 19th, 2020
As of today, the most severe economic crisis to afflict the United States economy is considered to be A) the Savings and Loan Crisis of 1978-1982. B) the Great Recession of 2007-2009. C) the Reagan Tax Law Changes of 1985. D) the Great Depression of the 1930s. ANSWER D
Date: September 19th, 2020
Which of the following statements about the factors affecting automobile insurance rates is true? A) The cost of collision coverage increases as a car gets older. B) Because of high speeds in rural areas, rural drivers tend to pay more for auto insurance than city drivers pay for auto insurance. C) Young unmarried male drivers […]
Date: September 19th, 2020
Profit maximization does not adequately describe the goal of the firm because: A) profit maximization does not require the consideration of risk. B) profit maximization often has a short-term focus. C) maximization of dividend payout ratio is a better description of the goal of the firm. D) Both A and B ANSWER D
Date: September 19th, 2020
Due to strict stock market controls, the most a stock’s value can drop in one trading day is 5%. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
