How is variable life different from universal life and term insurance? Who is it best suited for?
What will be an ideal response?
Answer: Like universal life, it has a cash value with flexible premiums and death benefits. Unlike universal life, the cash value and death benefit are tied to and vary according to the performance of a set of investments that are chosen by the policyholder. Term life in any of its forms has none of these features. Variable life is aimed at individuals who want to manage their own investments and are willing to take associated risks.
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Combining negatively correlated assets having the same expected return results in a portfolio with ________ level of expected return and ________ level of risk
A) a higher; a lower B) the same; a higher C) the same; a lower D) a lower; a higher
Grain Mills Corporation is required to register its securities under Section 12 of the Securities Exchange Act of 1934. Section 14(a) of the act regulates A) the declaration of dividends by Grain Mills's board of directors
B) the later re-registration of Grain Mills's securities. C) the short-swing activities of Grain Mills's insiders. D) the solicitation of proxies from Grain Mills's shareholders.
Jean LeFleur, owner of Happy Feet, a company that makes environmentally-sensitive foot wear, decided to move operations from Los Angeles to Bozeman, Montana. LeFleur wanted to be in an area noted for environmental quality. He built a new plant that produced oil-based sludge from its production process. The sludge could have been treated at the plant. But LeFleur decided that treatment was too
costly, so the company dumped sludge into the Gallatin River, which runs through Happy Feet property. Other sludge was buried in drums in a field at night. If Janet were to sue Happy Feet for trespass of her property, she would need to prove: a. a direct breach of the boundaries of her land b. a physical invasion of land by vapors c. a completely unreasonable interference with the use of her land d. economic interference that may cause bankruptcy if Happy Feet's actions are not enjoined e. intent by Mr. LeFleur to pollute Janet's property