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Financial Planning questions (Multiple questions)?

Discuss anything to do with property law - buying, selling property

Financial Planning questions (Multiple questions)?

Postby karlitis » Sat Apr 28, 2012 7:01 am

Can you guys please help answering there questions

8. Which of the following is not one of the risks equity (i.e., stock) investors normally face?
a. inflation risk
b. reinvestment risk
c. maturity risk
d. market risk

9. Which of the following is not one of the variables in the discounted dividend model for valuing a common stock?
a. dividend per share
b. earnings per share
c. growth rate of the dividend
d. discount rate

10. A form of property ownership in which each person owns his or her share independently and retains the right to transfer that share by sale or in their will is a:
a. joint tenancy with right of survivorship
b. tenancy in common
c. community property ownership
d. tenancy with reservation

11. An investor with a long time horizon (i.e., time when he/she will sell the investment) whose cash flow needs are satisfied by their employment income will most likely choose which of the following types of mutual funds?
a. an income-oriented fund
b. a balanced fund
c. a growth fund
d. an growth and income fund

12. A disability insurance policy that would pay benefits to the policy owner even if that person changes careers to a more risky profession than when they applied for the coverage is said to be:
a. convertible
b. universal
c. guaranteed renewable
d. non-cancellable

13. A stop-loss limit on a health insurance policy means
a. there are no out-of-pocket expenses for the insured after this limit is reached.
b. the insurer will not cover any more of the expenses.
c. there is no co-pay and no co-insurance provision on the policy.
d. the insurer will bear 100 percent of the expense only if the illness is catastrophic.

14. Which of the following variables and/or time-value-of-money calculations would be used to calculate the retirement wealth goal (total amount of money to have accumulated by retirement using the “capital utilization method.”
a. rate of return on investments
b. inflation rate
c. PV of an inflation-adjusted annuity
d. all of the above

15. A student with a degree in management would only sell their Personal Finance textbook after conducting which of the following analyses?
a. only checking with the bookstore to see if it will buy it back.
b. looking in their checking account to see if their “hard up” for cash.
c. comparing the present value of the information and knowledge that can be obtained in the future from the book to the amount of money that they would receive today for the book.
d. none of the above—analysis only causes paralysis!!
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Joined: Fri Apr 01, 2011 5:04 pm

Financial Planning questions (Multiple questions)?

Postby shaddoc98 » Sat Apr 28, 2012 7:13 am

8. c.
9. I think d, not sure.
10. Not a, but maybe b.
11. c, but this is industry dogma.
12. don't know.
13. don't know.
14. d.
15. c, which is basically the same as b.
Posts: 55
Joined: Fri Apr 01, 2011 6:23 pm

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