offer of return of premium

Related BrainMass Solutions

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  The offered investment has a return rate of 7%*(1-0.25%) = 6.98% However, Granny's expected return rate = risk premium + risk free return = 3% + 5% = 8% Since 6.98% < 8%, it is not an appropriate investment for her.

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  We have two good options: 1) Treasury Bills, which offer an absolutely safe return, and 2) The stock market. Your investment policy is going to depend on your tolerance for risk.

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• Finance: Expected return and Capital structuring.

  Find the highest expected return that is offered by one of these stocks. c. Find the lowest expected return that is offered by one of these stocks. d. Would Ford offer a higher or lower expected return if the interest rate were 6% rather than 4%?

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  195389 Stocks with a beta of zero offer an expected rate of return Are the following statements true or false? Explain. a. Stocks with a beta of zero offer an expected rate of return of zero. b.

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  Market return = Risk free rate + Risk premium. Risk free rate changes over time. Therefore, average historical return will not give the best practical forecast of future rate of return of stock market.

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  An insurance company has decided to offer a health insurance premium reduction if a policyholder's health care expenses do not exceed a specified dollar amount.

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  Efficient portfolios are portfolios that: (A) Offer the highest rate of return for the same amount of risk. (B) Offer the lowest rate of return for the same amount of risk. (C) Offer the lowest amount of risk for the same amount of return.