Question
In: Operations Management
Which of the following statements regarding cash-value life insurance is incorrect? Group of answer choices Allows...
Which of the following statements regarding cash-value life insurance is incorrect?
Group of answer choices
Allows policy owners to borrow from the policy.
Only provides pure insurance against unexpected death.
Blends pure term insurance with a savings option.
Costs much more than term policies.
Solutions
Expert Solution
Only provides pure insurance against unexpected death.
Pure insurance is provided in any kind of death and the amount is paid accordingly for the same as well.
keosha answered 2 years agoRelated Solutions
Which of the following statements is incorrect regarding Bucket based asset allocation? Group of answer choices...
Which of the following statements is incorrect
regarding Bucket based asset allocation?
Group of answer choices
A. Investors are able to change allocation of assets within, and
across, each bucket based on changes in investment objectives.
B. A "Three Bucket" based asset allocation allows for better
allocation of risk than a Risk Parity portfolio, since portfolio
managers can choose the level of risk allocation or types of
investments to each bucket.
C.Allocation of assets within each bucket can be done...
Which of the following statements is incorrect regarding Bucket based asset allocation? Group of answer choices...
Which of the following statements is incorrect
regarding Bucket based asset allocation?
Group of answer choices
Investors are able to change allocation of assets within, and
across, each bucket based on changes in investment objectives.
Asset allocation based on "Three Buckets" is inferior to
Mean-Variance allocation that uses historical risk, return and
correlation for each asset since the MV framework is backed by a
sound theoretical framework.
A "Three Bucket" based asset allocation allows for better
allocation of risk than...
Which of the following statements is incorrect regarding Bucket based asset allocation? Group of answer choices...
Which of the following statements is incorrect regarding Bucket
based asset allocation?
Group of answer choices
Allocation of assets within each bucket can be done either
through a quantitative methodology or a qualitative methodology
which considers the inherent nature of each asset that is
considered to be included in the portfolio
A "Three Bucket" based asset allocation allows for better
allocation of risk than a Risk Parity portfolio, since portfolio
managers can choose the level of risk allocation or types...
Which of the following statements is incorrect regarding international diversification? Group of answer choices A.International diversification...
Which of the following statements is incorrect
regarding international diversification?
Group of answer choices
A.International diversification across equities fails during
market downturns.
B.International diversification across sectors or across markets
provides similar improvement in the efficient frontier.
C.International diversification should consider the type and
weighting of industry sectors in each market.
D.International diversification leads to better improvements in
the efficient frontier for investors in developing economies than
for investors in developed economies.
E.International diversification improves the efficient frontier
for investors in...
Which one of the following statements is INCORRECT? Group of answer choices Systematic risk of a...
Which one of the following statements is INCORRECT?
Group of answer choices
Systematic risk of a security is equal to the value of its beta
coefficient
Market risk premium is the excess market rate of return over the
risk-free rate of return
Market yield from government bonds indicates the risk-free rate
of return
As per CAPM, the security risk premium is affected by the beta
coefficient of the security
Which one of the following statements is INCORRECT? Group of answer choices An overpriced security's reward-to-risk...
Which one of the following statements is INCORRECT?
Group of answer choices
An overpriced security's reward-to-risk ratio would be lower
than the reward-to-risk ratio of the market
The reward-to-risk ratio of the market would be lower than the
reward-to-risk ratio of an overpriced security
An under-priced security's reward-to-risk ratio would be higher
than the reward-to-risk ratio of the market
The reward-to-risk ratio of the market would be lower than the
reward-to-risk ratio of an under-priced security
All of the following statements regarding insurance policies are correct EXCEPT: Group of answer choices Adverse...
All of the following statements regarding insurance policies are
correct EXCEPT:
Group of answer choices
Adverse selection is the tendency of those that most need
insurance to purchase insurance policies while those with the least
perceived risk are less likely to pay the necessary premiums for
insurance.
An endorsement is a modification or change to a life or health
insurance policy.
Co-payments are loss-sharing arrangements whereby the insured
pays a flat dollar amount or percentage of the loss in excess...
1. Which of the following statements regarding income is correct? Group of answer choices a. All...
1. Which of the following statements regarding income is
correct?
Group of answer choices
a. All increases in net assets are income
b. All income increases assets
c. All increases in assets are income
d. All increases in equity are income
e. All income increases equity
2. Which of the following would be considered a breach of the
qualitative characteristic of relevance?
Group of answer choices
a. Omitting details about very complex financial instruments
because only a few users would...
Which of the following statements regarding common stock dividends is true? Group of answer choices They...
Which of the following statements regarding common stock
dividends is true?
Group of answer choices
They provide a tax deduction for the corporation paying them,
and they are not included in the taxable income of the
recipients
They provide a tax deduction for the corporation paying them,
but the recipients of the income must pay taxes on the income
They are paid out of the after-tax income of the corporation
paying them, and the recipients also pay taxes on this...
Which of the following statements about cash flows is not correct? Group of answer choices Cash...
Which of the following statements about cash flows is not
correct? Group of answer choices Cash flow from investing
activities decreases when the principal of a loan is paid. Cash
dividends decrease cash flow from financing activities. Cash flow
from investing activities increases when equipment is sold. Cash
flow from operating activities decreases when interest on a loan is
paid.
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