7. Receivables and Investments

Which benefit is available in an equity-indexed annuity, but not in a fixed annuity?

Under a pure life annuity, an income is payable by the company:

The cost of ______ is the minimum required return on a new investment.

Which of the following best describes a discount bond?

Which of the following best describes organizations that invest in equity capital not traded on public exchanges?

Which of the following statements about financial markets is correct?

Which method of funding higher education accrues interest until it is paid back?

Given the following probability distribution for the possible returns of an asset, what is the expected return?\[\begin{array}{|c|c|}\hline\text{Return (25)} & \text{Probability} \\\hline10 & 0.2 \\8 & 0.5 \\4 & 0.3 \\\hline\end{array}\]A) 7.2\% B) 8.0\% C) 6.5\% D) 9.0\%

When pricing a bond, how many cash flows must be discounted to present value?

Which of the following best explains why an adjustable-rate mortgage (ARM) is considered riskier than a fixed-rate mortgage?

Which of the following statements about robo-advised investing is true?

The market-required rate of return on a bond that is held for its entire life is called the:

In the dividend discount model (DDM), the expected return for investors comes from which two sources?

Which type of securities are most appealing to investors primarily because of the dividends they pay out?

Krissa purchases a 10-year bond as an investment. Which of the following best describes how this investment should be classified on her company's balance sheet under U.S. GAAP?