Pure term insurance A) cannot be renewed. B) ...

[biggirl4568]

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.

[kxciann]

Answer to Question 1

D

Answer to Question 2

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

[biggirl4568]

TYSM

[Bigfoot1984]

Thanks for the timely response, appreciate it