Quiz Ch 22 – Life Insurance Policy Options
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
What life insurance policy combines a fixed death benefit with customizable investment options for the policy’s cash value?
What life insurance policy combines a fixed death benefit with customizable investment options for the policy’s cash value?
Which life insurance option offers a death benefit and a tax-deferred savings plan with a fixed interest rate?
Which investment should an investor refrain from considering a focus on maximizing liquidity?
How do the objectives of personal trusts and the risk aversion of personal trust managers compare to those of individual investors?
What type of retirement plan do I have if it promises to pay me a yearly retirement amount based on a percentage of my highest annual salary for each year of service?
Who assumes all of the investment performance risk in a defined benefit pension plan, and who assumes it in a defined contribution pension plan?
What type of management strategy is demonstrated when a portfolio manager adjusts holdings quarterly to maintain the original sector weights?
Which term characterizes a portfolio with three index funds, with periodic weight adjustments based on sector forecasts?
What is mandated by the prudent investor rule?
Which retirement investment option is the investor likely to choose considering a preference for potential gains over certainty?