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
The investment banker performs three basic functions: (1 ) underwriting, (2 ) distributing, and (3 ) advising. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following statements best represents the “Agency Problem”? A) The agency problem may interfere with the implementation of maximizing shareholder wealth. B) Managers might attempt to benefit themselves in terms of salary and perquisites at the expense of shareholders. C) The agency problem results from the separation of management and the ownership of […]
Date: September 19th, 2020
How managers choose to finance the business does not affect the rate of return to shareholders because the rate of return is based on how the company uses the assets it has, not whether or not they paid for the assets with debt or equity. Indicate whether the statement is true or false […]
Date: September 19th, 2020
The need for extensive regulation of investment banking firms is limited due to the highly competitive nature of that industry. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
How much money do I need to place into a bank account that pays a 1.08% rate in order to have $500 at the end of 7 years? A) $629.51 B) $463.78 C) $751.81 D) $332.54 ANSWER B
Date: September 19th, 2020
How much money must be put into a bank account yielding 6.42% (compounded annually) in order to have $1,671 at the end of 11 years (round to nearest $1)? A) $798 B) $921 C) $886 D) $843 ANSWER D
Date: September 19th, 2020
Which of the following statements about joint underwriting associations for insuring high-risk drivers is (are) true? I. Underwriting losses are proportionately shared by all auto insurers based on premiums written in the state. II. Each company participating in a joint underwriting association sets it own rates. A) I only B) II only C) both I […]
Date: September 19th, 2020
