Author Question: ABC Company purchased an ISO Commercial General Liability Policy. The agent who sold ABC the ... (Read 71 times)

tsand2 · **on:** Jul 11, 2018

ABC Company purchased an ISO Commercial General Liability Policy. The agent who sold ABC the coverage noted that the coverage trigger in this policy was different from the trigger in the previous policy.

The new policy covers only those claims which are first reported during the policy period, provided the event occurred after a retroactive date. This type of policy is known as
A) extended reporting coverage.
B) claims-made coverage.
C) accident only coverage.
D) occurrence coverage.

Question 2

An investor currently holds the following portfolio:

Amount
Invested
8,000 shares of Stock A 16,000 Beta = 1.3
15,000 shares of Stock B 48,000 Beta = 1.8
25,000 shares of Stock C 96,000 Beta = 2.2
The investor is worried that the beta of his portfolio is too high, so he wants to sell some stock C and
add stock D, which has a beta of 1.0, to his portfolio. If the investor wants his portfolio to have a beta
of 1.72, how much stock C must he replace with stock D?
A) 31,000 B) 24,000 C) 18,000 D) 36,000