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Author Question: Pure term insurance A) cannot be renewed. B) provides only for individual coverage. ... (Read 46 times)

biggirl4568

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on: Jul 11, 2018
Pure term insurance
 
  A)
 
  cannot be renewed.
  B)
 
  provides only for individual coverage.
  C)
 
  has both a savings component and a death protection component.
  D)
 
  provides only death protection.

Question 2

Use the following data
 
  Market risk premium = 10
  Risk-free rate = 2
  Beta of XYZ stock = 1.6
  Beta of PDQ stock = 2.4
  Investment in XYZ stock = 15,000
  Investment in PDQ stock = 60,000
  You have no assets other than your investments in XYZ and PDQ stock.
  What is the expected return of your portfolio? Show all work.


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kxciann

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Reply #1 on: Jul 11, 2018
Answer to Question 1

D

Answer to Question 2

Portfolio Beta method:
B
p = (15/75  1.


biggirl4568

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Reply 2 on: Jul 11, 2018
Great answer, keep it coming :)

Dnite

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  • Posts: 297
Reply 3 on: Yesterday
Excellent

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