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3216. How does investment duration affect returns?

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There is no relationship whatsoever
With greater duration of investment returns are larger
If the duration is larger the rate of returns is likely to be smaller
With greater duration of investment larger tax possibility is likely
✅ The correct answer is B.
investment duration affect returns with greater duration of investment returns are larger. Generally, the higher the duration of a bond or a bond fund (meaning the longer you need to wait for the payment of coupons and return of principal), the more its price will drop as interest rates rise.

3222. Long-term equity anticipation security is usually classified as

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short-term options
long-term options
short money options
yearly call
✅ The correct answer is B.
Long-term equity anticipation security is usually classified as long-term options. Long-term equity anticipation securities (LEAPS) are publicly traded options contracts with expiration dates that are longer than one year.

3223. Quality of a commodity that satisfies some human want or need is called

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Service
Demand
Utility
Efficiency
✅ The correct answer is C.
Quality of a commodity that satisfies some human want or need is called Utility. Within economics the concept of utility is used to model worth or value, but its usage has evolved significantly over time. The term was introduced initially as a measure of pleasure or satisfaction within the theory of utilitarianism by moral philosophers such as Jeremy Bentham and John Stuart Mill.

3226. What-if technique, which examines changes in results if original prediction would not be achieved is called

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change analysis
original analysis
sensitivity analysis
predicted analysis
✅ The correct answer is C.
Technique that examines changes in results if original prediction would not be achieved is called sensitivity analysis. A sensitivity analysis determines how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

3224. Which of the following statements is incorrect?

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Insurance agent should indicate the scale of commission if asked by the customer
Insurance agent should share the commission by way of rebate
Insurance agent should disclose his licence on demand
Insurance agent should indicate the premium to be charged
✅ The correct answer is B.
All the options are correct, except option 3. Sharing commission with a client is illegal.