It makes sense to always sell your risky assets when market

Assignment Help Financial Management
Reference no: EM13980673

TRUE OR FALSE? A variable annuity contract can be defined as a contract in which the insurance company varies the annuity payments based on the net income of the insurance company. If the net income of the insurance company increases, then the annuity payments associated with a variable annuity contract will increase.

TRUE OR FALSE?

It makes sense to always sell your risky assets when the market for these assets becomes volatile and then buy them back when volatility declines.

Reference no: EM13980673

Questions Cloud

Consumer price index to multinational corporation : The consumer price index for the United States (U.S.) rose from approximately 121.4 in 1990 to approximately 199.3 in 2010. How much inflation was there in the U.S. during the twenty-year period? What is the significance of the consumer price index t..
Earned before the investment makes economic sense : St. Luke’s Convalescent Center has $200,000 in surplus funds that it wishes to invest in marketable securities. If transaction costs to buy and sell the securities are $2,200 and the securities will be held for three months, what required annual yiel..
What is the remaining principle after each installment : A person borrows $15,000 and has to pay the sum back in 5 annual installments starting one year from the day at which the loan is made. The interest rates are compounded annually and are variable. The first two years, the interest rate is 10% per ann..
What is the effect interest rate : If you borrow $2,500 from a bank now, at nominal interest rate of i (annual percentage rate, APR) compounded quarterly, and if you pay to the bank a year from now $2,700 what is the value of i? What is the effect interest rate (annual percentage yiel..
It makes sense to always sell your risky assets when market : A variable annuity contract can be defined as a contract in which the insurance company varies the annuity payments based on the net income of the insurance company. If the net income of the insurance company increases, then the annuity payments asso..
The annuitant can never outline the annuity payments : One feature that all annuity contracts have in common is that the annuitant can never outline the annuity payments. Risky investments always perform better than less risky investments over a five-year period. Generally, investments that have the pote..
Issued the annuity has no more obligations : Without a financial plan it is difficult to choose the investments that will provide sufficient value at the correct time. Immediate annuity contracts will only pay the annuitant. There are no exceptions. This means that upon the annuitant’s death th..
About the forecasting : Why does an HCO plan the sizes of its various components? What are the implications of too big and too small? Why is the final decision reserved for the governing board? How are the Epidemiologic Planning Model and the Precede-Proceed Model similar? ..
What should be the current stock price of hope : Hope Industries just paid a dividend of $2.00 per share (i.e., D0 = $2.00). Analysts expect the company's dividend to grow at 30 percent this year and at 20 percent in year 2. What should be the current stock price of Hope?

Reviews

Write a Review

Financial Management Questions & Answers

  Golbal remitence case-financial account components

Where are remittances across borders included within the balance of payments? Are they current or financial account components? Under what conditions are remittances significant contributors to the economy and overall balance of payments? What role d..

  Several bond issues outstanding

Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table

  Bond issuer the option to redeem the bond

An agreement giving the bond issuer the option to redeem the bond at a specified price prior to maturity is the                 provision.

  Capital structure for financing the expansion

A firm is about to double its assets to serve its rapidly growing market. It must choose between a highly automated production process and a less automated one. It also must choose a capital structure for financing the expansion.

  Compound interest on the unpaid balance

You have just borrowed $100,000, and you agree to pay it back over the next 25 years in 25 equal end-of-year payments plus 10 percent compound interest on the unpaid balance. What will be the size of these payments?

  Bond outstanding-What is the yield to maturity of the bond

May Industries has a bond outstanding that sells for $907. The bond has a coupon rate of 4.70 percent and 27 years until maturity. What is the yield to maturity of the bond?

  What is the net cash flow from investing activities

What is the net cash flow from operating activities? What is the net cash flow from investing activities? What is the net cash flow from financing activities? What is the change in cash?

  The required return for each companys stock

Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.60 next year. The growth rate in dividends for all three companies is 4 percent. The required return for each company’s stock is 6 percent, 9 percent, and 12 percent, respective..

  Required return that exceeds its rate of return

Which one of the following indicates a project has a required return that exceeds its rate of return?

  In contrast to the charitable remainder trust

In contrast to the charitable remainder trust, the charitable lead trust receives an income interest from the donor instead of a remainder interest. Which of the following statements concerning the advantages of the charitable lead trust created for ..

  What is relation of value of firm and its capital structure

What is the relationship between the value of a firm and its capital structure, given the existence of a corporate income tax, bankruptcy costs, and agency costs?

  In a capital intensive but mature industry

In a capital intensive but mature industry such as steel growing about 5% per year on average but facing cyclical demand what would be the appropriate financing mix to replace a blast furnace costing $300 million? Where would a steel firm seek financ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd