Author name: Administrator

1955. Portfolio weights are found by_________________.

dividing standard deviation by expected value
calculating the percentage each asset is to the total portfolio value
calculating the return of each asset to total portfolio return
dividing expected value by the standard deviation
✅ The correct answer is B.
Portfolio weights are found by calculating the percentage each asset is to the total portfolio value. A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds.

1959. What of the following statement is correct regarding insurance?

Life Insurance contract is between a proposer and his agent for protection of his life’s economic worth
Prospectus is in lieu of policy in certain cases
Prospectus is an introductory document giving details of features and benefits of life insurance products to a proposer
There is no difference between a proposal and prospectus
✅ The correct answer is C.
Prospectus is an introductory document giving details of features and benefits of life insurance products to a proposer. When a company seeks to raise capital through the offer of securities to the public, or seeks an admission to trading of securities, a prospectus or listing particulars will be issued detailing in-depth financial information about the company and its future objectives and strategies.

1924. The term ‘marginal’ in economics means

Unimportant
Additional
The minimum unit
Just barely passing
✅ The correct answer is B.
The term ‘marginal’ in economics means Additional. In economics, the term marginal is used to indicate the change in some benefit or cost. when an additional unit is produced. For instance, the marginal revenue is the change in. total revenue when an additional unit is produced.

1925. _____ is an implicit cost of production

Wages of the labour
Charges for electricity
Interest on owned money capital
Payment for raw material
✅ The correct answer is C.
Interest on owned money capital is an implicit cost of production. The costs in which there is no cash outlay, is known as Implicit Cost.

1928. Marginal revenue will be negative if elasticity of demand is

Less than unity
More than 1
Equal to 1
Equal to zero
✅ The correct answer is A.
Marginal revenue will be negative if elasticity of demand is less than unity. At a quantity greater than ON price elasticity on the demand curve, curve is less than one and the marginal revenue is negative.

1931. Which among the following is a limitation of traditional life insurance products?

Yields on these policies is high
Clear and visible method of arriving at surrender value
Well defined cash and savings value component
Rate of return is not easy to ascertain
✅ The correct answer is D.
Rate of return is not easy to ascertain in traditional life insurance products. A traditional whole life policy is a type of life insurance contract that provides for insurance coverage of the contract holder for his/her entire life. These policies also include an investment component, which accumulates a cash value that the policyholder can withdraw or borrow against.
Scroll to Top