Author Question: Which of the following statements about the appraisal clause in the Homeowners 3 policy is (are) ... (Read 48 times)

ARLKQ · **on:** Jul 11, 2018

Which of the following statements about the appraisal clause in the Homeowners 3 policy is (are) true?

I. It is used to determine a value for personal property when the policy is issued.
II. It is used to help settle disputes over the amount of a loss after a loss has occurred.
A) I only
B) II only
C) both I and II
D) neither I nor II

Question 2

You are going to invest all of your funds in one of three projects with the following distribution of
possible returns:

PROJECT 1 PROJECT 2
Probability Return
Standard
Deviation Beta Probability Return
Standard
Deviation Beta
50 Chance 22 12 1.1 30 Chance 36 19.5 1.0
50 Chance -4 40 Chance 10.5
30 Chance -20
PROJECT 3
Probability Return
Standard
Deviation Beta
10 Chance 28 12 1.2
70 Chance 18
20 Chance -8
If you are a risk averse investor, which one should you choose?
A) Project 1
B) Project 2
C) Project 3
D) Either Project 1 or Project 2 because they have the same expected return

ebonylittles · **Reply #1 on:** Jul 11, 2018

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