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
All of the following are arguments for no-fault automobile insurance laws EXCEPT A) No-fault is unnecessary as it’s easy to determine which driver was negligent when a multiple-vehicle accident occurs. B) A large portion of each premium dollar is used for purposes other than compensating accident victims for their losses. C) There are delays in […]
Date: September 19th, 2020
For a well-diversified investor, an investment with an expected return of 10% with a standard deviation of 3% dominates an investment with an expected return of 10% with a standard deviation of 5%. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The income statement describes the financial position of a firm on a given date. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Arguments often used against no-fault automobile insurance laws include all of the following EXCEPT A) It is often difficult to determine which driver was negligent when a multiple-vehicle accident occurs. B) Many injured persons will not be compensated for their full losses because payments for pain and suffering will be eliminated. C) The defects of […]
Date: September 19th, 2020
