FIN380 FINAL FINAL TEST 2026
QUESTIONS WITH CORRECT ANSWERS
GRADED A+
• Borrowing from ______ is not advisable.
Answer: relatives
• Marilyn Simms died with a $200,000 life insurance policy. Her husband,
Jack, was the primary beneficiary and their children, Mimi (age 24) and Ann
(age 30), were the contingent beneficiaries. All three survived Marilyn. How
would the policy proceeds be distributed?.
Answer: $200,000 to Jack
• Asset Allocation (Top-Down) Investment Strategy.
Answer: Start with macro-level allocation (stocks, bonds, cash).
• Long Position.
Answer: Buy low, sell high.
• Risk-Free Asset.
Answer: - Standard deviation of a risk-free asset is always zero. - Often
represented by T-bills or government securities.
• Which of the following regarding workers comp insurance is true.
Answer: Workers comp insurance compensates workers who are injured on
the job or become ill through work related causes
• The policy owner assumes the investment risk with a _____ insurance
policy.
Answer: Variable Life
• If a borrower has a high fico score then there js.
Answer: A high chance of his or her loan getting approved
• Short Position.
Answer: Sell high, buy low
, • Short Margin.
Answer: Sell borrowed securities; equity = your capital, debt = value of
short position.
• Small Stocks.
Answer: Wide, flat(high risk)
• Minimum Variance Weights:.
Answer: Weights that minimize portfolio variance.
• A balance sheet provides a statement of ones financial.
Answer: position
• Which of the following is an illegal method of reducing your tax liability.
Answer: Not reporting the taxable income you receive
• Which of the following statements about setting long term goals is trye.
Answer: The goals should be realistic
• A ______ would most likely pay estimated taxes.
Answer: Self -employed plumber
• Long Margin.
Answer: Buy with borrowed funds; equity = your money, debt = borrowed.
• Which of the following statements regarding loan maturity is true?.
Answer: The longer the loan maturity, the higher the amount of interest
paid.
• Clara's portfolio is worth $200,000 and her portfolio consists of common
stocks of $56,000 equity is ____ of her portfolio.
Answer: 28%
• Sharpe Optimal Weights.
Answer: Maximize the Sharpe ratio.
• A bull market is characterized by.
Answer: investor optimism
QUESTIONS WITH CORRECT ANSWERS
GRADED A+
• Borrowing from ______ is not advisable.
Answer: relatives
• Marilyn Simms died with a $200,000 life insurance policy. Her husband,
Jack, was the primary beneficiary and their children, Mimi (age 24) and Ann
(age 30), were the contingent beneficiaries. All three survived Marilyn. How
would the policy proceeds be distributed?.
Answer: $200,000 to Jack
• Asset Allocation (Top-Down) Investment Strategy.
Answer: Start with macro-level allocation (stocks, bonds, cash).
• Long Position.
Answer: Buy low, sell high.
• Risk-Free Asset.
Answer: - Standard deviation of a risk-free asset is always zero. - Often
represented by T-bills or government securities.
• Which of the following regarding workers comp insurance is true.
Answer: Workers comp insurance compensates workers who are injured on
the job or become ill through work related causes
• The policy owner assumes the investment risk with a _____ insurance
policy.
Answer: Variable Life
• If a borrower has a high fico score then there js.
Answer: A high chance of his or her loan getting approved
• Short Position.
Answer: Sell high, buy low
, • Short Margin.
Answer: Sell borrowed securities; equity = your capital, debt = value of
short position.
• Small Stocks.
Answer: Wide, flat(high risk)
• Minimum Variance Weights:.
Answer: Weights that minimize portfolio variance.
• A balance sheet provides a statement of ones financial.
Answer: position
• Which of the following is an illegal method of reducing your tax liability.
Answer: Not reporting the taxable income you receive
• Which of the following statements about setting long term goals is trye.
Answer: The goals should be realistic
• A ______ would most likely pay estimated taxes.
Answer: Self -employed plumber
• Long Margin.
Answer: Buy with borrowed funds; equity = your money, debt = borrowed.
• Which of the following statements regarding loan maturity is true?.
Answer: The longer the loan maturity, the higher the amount of interest
paid.
• Clara's portfolio is worth $200,000 and her portfolio consists of common
stocks of $56,000 equity is ____ of her portfolio.
Answer: 28%
• Sharpe Optimal Weights.
Answer: Maximize the Sharpe ratio.
• A bull market is characterized by.
Answer: investor optimism
