1598. Which type of Annuity will have 2 distinct phases?

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Immediate Annuity
Deferred Annuity
Spouse Annuity
Joint life annuity
✅ The correct answer is B.
There are two phases for a deferred annuity: the accumulation or deferral phase in which the customer deposits (or pays premiums) and accumulates money into an account; the distribution or annuitization phase in which the insurance company makes income payments until the death of the annuitants named in the contract.

1597. Of all stocks in a portfolio, required rate of return is classified as

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return portfolio
in volatile portfolio
volatile portfolio
market portfolio
✅ The correct answer is D.
Of all stocks in a portfolio, required rate of return is classified as market portfolio. A market portfolio is a theoretical bundle of investments that includes every type of asset available in the world financial market, with each asset weighted in proportion to its total presence in the market.

1594. Which of the following is true regarding the expected return of a portfolio?

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It is a weighted average only for stock portfolios
It can only be positive
It can never be above the highest individual return
All of the above are true
✅ The correct answer is C.
It can never be above the highest individual return is true regarding the expected return of a portfolio. The expected return for an investment portfolio is the weighted average of the expected return of each of its components.

1593. Right of common stockholders to purchase additional stock issued by company is classified as

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common right
pre-emptive right
purchase right
selling right
✅ The correct answer is B.
Right of common stockholders to purchase additional stock issued by company is classified as pre-emptive right. A preemptive right offers select shareholders of a corporation the right to buy a proportional interest in any future issue of the company’s common stock.

1592. Rate of return which is required to satisfy stockholders and debt holders is classified as

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weighted average cost of interest
weighted average cost of capital
weighted average salvage value
mean cost of capital
✅ The correct answer is B.
Rate of return which is required to satisfy stockholders and debt holders is classified as weighted average cost of capital. Weighted average cost of capital ( WACC) is the average after-tax cost of a company’s various capital sources used to finance the company.

1611. A loan that is repaid on monthly, quarterly and annual basis in equal payments is classified as

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amortized loan
depreciated loan
appreciated loan
repaid payments
✅ The correct answer is A.
A loan that is repaid on monthly, quarterly and annual basis in equal payments is classified as amortized loan. An amortized loan is a loan with scheduled periodic payments that are applied to both principal and interest.