Q: Explain the different between takaful and insurance.
A: Takaful is a new form of insurance product made as per as the principles of Islamic principles of…
Q: 10. The bond has a 30-year maturity, an 8% coupon, and sells at an initial yield to maturity of 8%.…
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Q: Credit insurance; pls draw and explain how does that work ? What are the types of it ? Who are the…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: 1. What are some of the problems associated with business income insurance policies?
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Q: 1. What functions are carried out by insurance companies? Given these functions, how do insurance…
A: 1. Companies that provide risk management in the form of insurance contracts make up the insurance…
Q: Uncertainty and willingness to pay for insurance. Utility = (Wealth)1/3 Prob(flood) = .04 Prob(no…
A: Note: Since, you've posted question with multiple sub-parts, we will solve the first the first three…
Q: 5) A person with a current wealth of $100,000 who faces the prospect of 25 percent chance of losing…
A: Given information Initial wealth=$100000 Loss probability=0.25 Loss amount= $20000 Utility…
Q: Economics please let me know the right answer Risk is highest when: A B C D gearing ratio is lower…
A: Gearing Ratio:- A series of financial measurements known as gearing ratios assesses the firm's level…
Q: Bonds offer a(n) A. fixed stream of payments and a fixed time period. B. fixed stream of payments…
A: A bond is a kind of safety utilized in shared assets and private contributions. The most well-known…
Q: Which of the following is true of risk premium? a. The speculative corporate issues have a lower…
A: Risk premium is the excess return a firm or corporate provides when the investment is risky. Higher…
Q: insurance creates wealth
A: Insurance is a financial instrument that protects an individual from unwarranted losses due to a…
Q: 7. Choose a false statement and give an explanation. a. Optimal risky portfolio is the best…
A: Answer Statement 'b' is False. Explanation Because the total sum of optimal weights is equal to 1.…
Q: (a) Explain how the virtual absence of annuity markets could explain why most countries have…
A: Annuity markets are growing in importance and will continue to do as such for quite a while. The…
Q: This refers to the percentage that allows the investors to be compensated for any loss in purchasing…
A: Inflation premium refers to adjustment in the real interest rate for the loss of potential…
Q: With examples explain at least two major unethical practices of bankers and their effects…
A: There are many unethical practices adopted by the bankers which can be stated as: Toxic loans Money…
Q: 9. What type of risk preferences does John have? Mae owns an insurance company in a nearby town and…
A: Given value of wealth = 225 Utility function = 5 √C Income from planting corn:- 675 with p=0.7…
Q: Credit insurance; pls draw and explain how does that work ? What are the types of it ? Who are the…
A: 1. Credit insurance reimburses existing obligations in the event of a person's death, incapacity,…
Q: Find one (1) multi-national company in the Philippines. Identify at least five (5) risk management…
A: There are many measures that can be taken in order to protect the company from any kind of risk.…
Q: 21. The Red Furniture Company claims a distribution centre esteemed at $90,000, loaded with…
A: Given information, The structure of the distribution centre = $90,000 Furniture = $2,00,000…
Q: An insured's home is covered for $10,000 under HO-3 Form. During a violation in France, personal…
A: Answer -
Q: A money market mutual fund invests in Question 21 options: a) a combination of stocks,…
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Q: Compared to the pension assumptions Stereo Warehouse used in 2008, which of thefollowing pairs of…
A: Answer A) Estimate future salary increase, inflation
Q: The demand curve and supply curve for one-year discount bonds with a face value of $1.050 are…
A: First, convert the demand function into Q form: P = -0.8Q+ 1160 0.8Q = 1160 - P Q = 1160 / 0.8 -…
Q: Jagmit owns a 2009 sedan (auto). The last time Jagmit renewed his auto insurance, he decided to drop…
A: A policy where an entity or individual tends to receive reimbursement against losses from an…
Q: Required: 1. If a farmer chose Technique A, what would happen? a. Possibility of a lower yield and…
A: Hi! Thank you for the question. As per the honor code, We’ll answer the first question since the…
Q: 3. What do you think is the main reason that people buy life insurance?
A: Life insurance is a contract that is made between two individuals that are between the individual…
Q: Recognize theprincipal–agentproblem arising frommoral hazard in equitycontracts and summarize the…
A: Asymmetric information refers to when the country or the market lacks information and has…
Q: 12. Why do individuals act in riskier ways after being insured? A. Due to the problem of adverse…
A: Individual act in riskier ways when they are insured as they know that the loss will be compensated…
Q: a) Discuss the role of insurance in the growth and development of the Ghanaian economy
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 2. The demand curve and supply curve for one-year discount bonds with a face value of $900 are…
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Q: a) Explain the reason(s) why bond ratings and interest rate spreads on bonds differ. Which measure…
A: The credit quality or creditworthiness of government-issued bonds or corporate-issued bonds is…
Q: 1. “An agent who demands more insurance than another agent, should also demand less risky asset."
A:
Q: 2. Consider an individual with a current wealth of $100,000 who faces the prospect of a 25% chance…
A: Given that, Y1=$100000Y2=$80000P1=0.75 (1-0.25)P2=0.25
Q: Why is the relationship between price and yield negative? a. Because investors reward higher…
A: The formula for bond price calculation is given by: Bond Price = ∑i[ C/(1+r)n + F/(1+r)n] where i…
Q: An 8 percent coupon bond has a maturity of 6 years. The Bond has a face value of 2,000 and it is…
A: Bond is the financial instrument that firms or organizations raise for selling it to the investors…
Q: 26. If the interest rate is zero, then $1,000 to be paid in 10 years has a present discount value…
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Q: 9. A 10-year bond sells for its face value of $10,000, with an annual coupon of $250. Because of…
A: 9. Bond new yield = coupon payment / selling price * 100 = 250/12500 * 100 = 2 % Answer is…
1. Explain the major social and economic cost of insurance in the Philippine Economy.
2. Give an example of financial analysis in risk management decision making.
Step by step
Solved in 3 steps
- Required:1. If a farmer chose Technique A, what would happen?a. Possibility of a lower yield and lower riskb. Possibility of a higher risk and higher yieldc. Possibility of lower yield with higher risk but sustainabled. Possibility of higher yield and lower riske. No answer 2. If a farmer chose Technique B, what would happen?a. Possibility of a lower yield and lower riskb. Possibility of a higher risk and higher yieldc. Possibility of lower yield with higher risk but sustainabled. Possibility of higher yield and lower riske. No answerDiscuss the differntaition between Neccesity and Luxury expendses in life. Why Islam discourage luxury life style? Discuss the role of Insurance in managing your investment risks.You want to buy a life insurance so that your family will receive $25,000 per year in interest. The interest rate expected from banks is 11%, while inflaation rate is expected to be 4% per year. a. What is the effective interest rate? (7.5%, 6.73%, 3.6%, or 2.75%) b. How much insurance should you buy? ($333,333, $694,444, $371,471, or $909,090) provide complete solution please
- What are the key steps in refining oil. How does the refinery industry deploy capital to increase its yield in the refineries so it get more and more higher valued products and increase its yield? The midstream, both gas and oil, has a value chain and contract structure all its own. Provide an overview of the value chain and highlight the key differences between oil, gas and NGLs?Find one (1) multi-national company in the Philippines. Identify at least five (5) risk management best practices of this company and explain why this practices are important? and please attach references.This refers to the percentage that allows the investors to be compensated for any loss in purchasing power due to inflation. *A. Inflation PremiumB. Liquidity Risk PremiumC. None of the choicesD. Maturity Risk PremiumE. Real Risk Free of Interest
- Identify and explainthe three factorsaffecting the riskstructure of interestratesSam, after taking a $200 loan from the bank to finance an investment that pays $1000 50% of the time and $0 50% of the time at a 100% interest, discovers another riskier investment that pays out $5,000 but only 10% of the time, while the other 90% of the time it pays zero. Would the he want to switch to the riskier investment? Question 4 options: Yes because his return has increased No because his liability to the bank has increased No because his return has decreased None of the aboveDiscuss: i) diversifiable risk; ii) market risk; iii) systematic risk iv) unsystematic risk;
- In June 2020, Singapore Airlines Limited undertook a renounceable rights issue ofnew ordinary shares in the capital of the company and mandatory convertible bondsto entitled shareholders. •Explain renounceable rights issue of ordinary shares and discuss theadvantages and disadvantages. •Explain to Jaleel what is convertible bonds and why would SingaporeAirlines undertake mandatory convertible bonds to entitled shareholders?Recognize theprincipal–agentproblem arising frommoral hazard in equitycontracts and summarize the methods forreducing it.2. Consider an individual with a current wealth of $100,000 who faces the prospect of a 25% chance of losing $20,000 through theft of her car during the next year. If the person’s utility function is U(X) = ln(X), where X is wealth: a. calculate expected utility without insurance, b. calculate the actuarially fair premium for full insurance, c. calculate expected utility with full insurance at the actuarially fair premium d. calculate the maximum amount the individual would pay for full insurance.
