Which of he following statements is CORRECT about beneficiary designalions? A.By naming an irrevocable beneliciary, a policyowner forfeits he right to change he beneficiary B.A primary beneficiary may not be a minor. C.primary beneficiary and a contingent beneficiary each receive one-half of he proceeds. D.In group insurance, lhe employer is the beneficiary for each employee.

Which of he following statements is CORRECT about beneficiary designalions? A.By naming an irrevocable beneliciary, a policyowner forfeits he right to change he beneficiary B.A primary beneficiary may not be a minor. C.primary beneficiary and a contingent beneficiary each receive one-half of he proceeds. D.In group insurance, lhe employer is the beneficiary for each employee.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 2E

See similar textbooks

Similar questions

Of the methods for covering risk, which is essentially a dollar for dollar shift of consumption between periods? A. Savings B. Private Market Insurance C. Social Insurance D. Charity
2. “A risk-averse individual will always full insure, meaning that uncertainty is irrelevant.” Discuss this comment using relevant model(s) studied in the unit.
Which of the following is not a methodology used to determine the amount of necessary life insurance?a. The Human Life Value Method.b. The Financial Needs Method.c. The Ways and Means Method.d. The Capitalization of Earnings Method.
A pay-as-you -go social security plan collects 12 goods from each young person and distribute these goods equally to old people. Assume that population is constant and r = 1. What is the effect of this pension plan on: -the wealth of future generations - consumption when young and old -private saving by the young -investment by the young
First, explain the concept of risk-return trade off. How do you define return? How do you define risk? What does the trade-off says, in you own words? show the application of the risk-return trade-off for pensions choice. Does the existence of a risk-return trade-off means that all the investors select the same type of pension? show how the selection of the adequate risk-return trade-off is dependant on the investor’s risk-aversion. Detail the influence of other objective factors such as age, economic situation and personal wealth. As you can see, understanding the risk-return trade-off is essential in finance. A popular phrase in Finance is “there is no such thing as a free lunch”. Try to explain this expression based on your new understanding of the risk-return trade off. Last, reflect on how the risk-return trade-off can be applied to your own life. Identify an area in your professional life where you can apply the risk-return trade-off approach. Then find an area in your personal…
Question content area Part 1 The potential market represents all active duty military members, allveterans, and their families. Assume that according to the United States Department of Defense, as ofDecember 31, last year there were 1 comma 361 comma 597 active duty personnel in all armed services.The veteran population totaled 21 million last year. Assuming the average cost of life insurance is $750 peryear and that potential customers purchase one policy per year, use the chain ratio method to calculatethe market potential for life insurance in the military market. Hint: see the Market Potential and SalesEstimates section of Appendix 3 Marketing by the Numbers in your textbook. Part 2 The number of buyersin the market can be estimated as 22,361, 597. (Round to the nearest whole number.) Part 3 Themarket demand is estimated as $16.77 million. (Round to the nearest whole number.)
At a company, 20 employees are making contributions for a retirement gift. Each of the 20 employees is choosing how many dollars to contribute from the interval [0,20]. The manager of these 20 employees announces that she will contribute dd dollars for every dollar that an employee contributes. The payoff to employee ii who makes contribution of xixi dollars is bi(1+d)xi−xi, where bi>0.bi(1+d)xi−xi, where bi>0. Assume that d=4d=4, bi=0.25bi=0.25 for i=1,2,…,10i=1,2,…,10, andbi=0.5bi=0.5 for i=11,12,…,20i=11,12,…,20 What is the best contribution level of any employee ii for i=1,2,…,10i=1,2,…,10. At a company, 20 employees are making contributions for a retirement gift. Each of the 20 employees is choosing how many dollars to contribute from the interval [0,20]. The manager of these 20 employees announces that she will contribute dd dollars for every dollar that an employee contributes. The payoff to employee ii who makes contribution of xixi dollars is bi(1+d)xi−xi,…
A person's utility function is U = C1/2 . C is the amount of consumption they have in a given period. Their income is $40,000/year and there is a 2% chance that they'll be involved in a catastrophic accident that will cost them $30,000 next year. a. Calculate the actuarially fair insurance premium. What would your expected utility be if you were to purchase the actuarially fair insurance premium? b. What is the most you would be willing to pay for insurance, given your utility function?
B. Richard's nickname is "No-Risk Rick" because he is an extremely risk-averse individual. His utility function is given by U(W) = √W. where W represents his current wealth in dollars. He currently has $100 worth of property, but there is a 50% chance that all of it will be stolen. What is Richard's expect wealth and expected utility of wealth? An insurance company offers to reimburse Richard for his loss if the money is stolen. What is the most that Richard would pay for such a policy? Explain. Please solve this with in 1 hour
Isabella understands that if she were to play golf, she would be able to spend time outdoors (where she likes to be) with people she enjoys. However, because she has taken golf lessons 10+ times and still cannot hit the golf ball, she does not believe that she can actually play golf. Based on what you know about Expectancy Theory, will she join her friends to play golf this summer? Group of answer choices Yes. Instrumentality and Valence are high. No. Valence is too high. No. Expectancy is low. Yes. Instrumentality is high.
Suppose Charles would like to invest $7,000 of his savings. NOTE: the dropdown choice for first question is (debt ot equity), the dropdown choice for the second question is ( [an IOU or promise to pay from] OR a claim to partial ownership in), the dropdown choice for the third question is (charles and the other stockholders or the bondholders), the dropdown choice for the LAST one is higher or lower)
Explain the implication of conservatism considering that majority of investors are emotional.