FNCE 2820 Exam| Questions and Complete
Answers| Verified 100% Correct| Newest 2024-
2025
Property insurance coverage limits - ✔✔Amount of coverage and riders available to
increase face amount
Deductibles are paid with... - ✔✔each loss occurence
Co-insurance - ✔✔an insured individual's share of the costs of a covered expense
Rule of 80 - ✔✔Insured pays 20, insurance pays 80
Peril - ✔✔An event that leads to property damage
Title Insurance - ✔✔Insures against defects in the title, pays for legal defense if
challenged, generally bought with home purchase
Umbrella Policy - ✔✔Usually stacked on existing policies, designed to offer "excess"
liability protection, designed to cover litigation
Life Insurance - ✔✔provides tax free accumulation and distribution, allows for
contractual giving, avoids probate
, Key Factors in Investment Selection - ✔✔time horizon, risk tolerance, investment and
experience, available resources, investment philosophy
Three major criteria for investment planning - ✔✔The time value of money, risk
adjusted rewards, efficient markets
How is risk measured with investing? - ✔✔Standard deviation
Pooled investments - ✔✔funds in a portfolio from many individual investors that are
aggregated for the purposes of investment
Passive investing - ✔✔buying and holding investments with minimal portfolio
turnover
Active investing - ✔✔buying and selling investments based on their short-term
performance, attempting to beat average market returns
Investment allocation - ✔✔involves dividing your investments among different
assets, such as stocks, bonds, and cash.
Investment rebalancing - ✔✔selling some assets in your portfolio and buying others
to help maintain your target asset allocation
Tax efficiency - ✔✔choosing the right investments and the right accounts to hold
those investments
Investing in equities - ✔✔• Ownership in the company• Voting rights• Right to
dividends• Residual claim to pro-rata distribution of assets in the event of a corporate
Answers| Verified 100% Correct| Newest 2024-
2025
Property insurance coverage limits - ✔✔Amount of coverage and riders available to
increase face amount
Deductibles are paid with... - ✔✔each loss occurence
Co-insurance - ✔✔an insured individual's share of the costs of a covered expense
Rule of 80 - ✔✔Insured pays 20, insurance pays 80
Peril - ✔✔An event that leads to property damage
Title Insurance - ✔✔Insures against defects in the title, pays for legal defense if
challenged, generally bought with home purchase
Umbrella Policy - ✔✔Usually stacked on existing policies, designed to offer "excess"
liability protection, designed to cover litigation
Life Insurance - ✔✔provides tax free accumulation and distribution, allows for
contractual giving, avoids probate
, Key Factors in Investment Selection - ✔✔time horizon, risk tolerance, investment and
experience, available resources, investment philosophy
Three major criteria for investment planning - ✔✔The time value of money, risk
adjusted rewards, efficient markets
How is risk measured with investing? - ✔✔Standard deviation
Pooled investments - ✔✔funds in a portfolio from many individual investors that are
aggregated for the purposes of investment
Passive investing - ✔✔buying and holding investments with minimal portfolio
turnover
Active investing - ✔✔buying and selling investments based on their short-term
performance, attempting to beat average market returns
Investment allocation - ✔✔involves dividing your investments among different
assets, such as stocks, bonds, and cash.
Investment rebalancing - ✔✔selling some assets in your portfolio and buying others
to help maintain your target asset allocation
Tax efficiency - ✔✔choosing the right investments and the right accounts to hold
those investments
Investing in equities - ✔✔• Ownership in the company• Voting rights• Right to
dividends• Residual claim to pro-rata distribution of assets in the event of a corporate
