Exam (elaborations)
WMCP PRACTICE QUESTIONS WITH ACTUAL SOLUTIONS.
- Course
- Institution
WMCP PRACTICE QUESTIONS WITH ACTUAL SOLUTIONS.
[Show more]
Seller
Follow
Content preview
WMCP PRACTICE QUESTIONS WITHACTUAL SOLUTIONS !!
Which bvvone bvvof bvvthe bvvfollowing bvvstatements bvvcorrectly bvvdescribes bvvmarginal
bvvutility?
A. bvvAn bvvincremental bvvamount bvvof bvvmoney bvvreceived bvvfor bvvperforming bvvan
bvvadditional bvvamount bvvof bvvwork
B. bvvThe bvvsatisfaction bvvreceived bvvfrom bvvan bvvadditional bvvunit bvvof bvvconsumption
C. bvvThe bvvtotal bvvamount bvvof bvvsatisfaction bvvreceived bvvfrom bvvspending bvvannual
bvvincome bvv- bvvAnswerB. bvvThe bvvsatisfaction bvvreceived bvvfrom bvvan bvvadditional
bvvunit bvvof bvvconsumption
What bvvpooling bvvtechnique bvvcan bvvreduce bvvthe bvvrisk bvvof bvvdying bvvearly bvvin bvvthe
bvvlife bvvcycle bvvand bvvnot bvvmeeting bvva bvvbequest bvvgoal?
A.
Annuities
B.
Bond bvvladders
C.
Life bvvinsurance bvv- bvvAnswerC.
Life bvvinsurance
News bvvof bvvan bvvunexpected bvvinheritance bvvwill bvvmost bvvlikely bvvresult bvvin bvvwhich
bvvof bvvthe bvvfollowing?
A.
An bvvincrease bvvin bvvpermanent bvvincome bvvand bvva bvvreduction bvvin bvvthe bvvsavings
bvvneeded bvvbefore bvvretirement
B.
An bvvincrease bvvin bvvpermanent bvvincome bvvwith bvvno bvvchange bvvto bvvthe bvvamount
bvvof bvvsavings bvvneeded bvvbefore bvvretirement
C.
A bvvreduction bvvin bvvpermanent bvvincome bvvand bvvan bvvincrease bvvin bvvthe bvvsavings
bvvneeded bvvbefore bvvretirement bvv- bvvAnswerA.
An bvvincrease bvvin bvvpermanent bvvincome bvvand bvva bvvreduction bvvin bvvthe bvvsavings
bvvneeded bvvbefore bvvretirement
A bvvtypical bvvutility bvvcurve bvvis
A.
convex bvvbased bvvon bvva bvvdecreasing bvvmarginal bvvutility bvvof bvvconsumption.
B.
concave bvvbased bvvon bvva bvvdecreasing bvvmarginal bvvutility bvvof bvvconsumption.
,C.
concave bvvbased bvvon bvvan bvvincreasing bvvmarginal bvvutility bvvof bvvconsumption. bvv-
bvvAnswerB.
concave bvvbased bvvon bvva bvvdecreasing bvvmarginal bvvutility bvvof bvvconsumption.
Which bvvof bvvthe bvvfollowing bvvis bvva bvvmarket bvvrisk bvvto bvvthe bvvvalue bvvof bvvhuman
bvvcapital?
A.
Working bvvin bvvan bvvoccupation bvvwhose bvvprofits bvvare bvvclosely bvvtied bvvto bvvinterest
bvvrates
B.
An bvvinjury bvvthat bvvdiminishes bvvthe bvvvalue bvvof bvva bvvperson's bvvmarket
bvvproductivity
C.
A bvvpremature bvvdeath bvveliminating bvvfuture bvvincome bvv- bvvAnswerA.
Working bvvin bvvan bvvoccupation bvvwhose bvvprofits bvvare bvvclosely bvvtied bvvto bvvinterest
bvvrates
The bvvprimary bvvpurpose bvvof bvva bvvcontingent bvvclaim bvvis bvvto
A.
increase bvvexpected bvvlifetime bvvwealth.
B.
provide bvva bvvhigher bvvreturn bvvthan bvvwhat bvvis bvvavailable bvvfrom bvvsafe bvvinvestment
bvvassets.
C.
protect bvvtotal bvvwealth bvvagainst bvva bvvrandom bvvloss. bvv- bvvAnswerC.
protect bvvtotal bvvwealth bvvagainst bvva bvvrandom bvvloss.
A bvvyear bvvof bvvtuition bvvcosts bvv$10,000 bvvtoday. bvvWe bvvsave bvv$10,000 bvvtoday bvvto
bvvfund bvvtuition bvvin bvv5 bvvyears. bvvAfter bvv5 bvvyears, bvvour bvvinvestment bvvhas
bvvgrown bvvto bvv$15,000. bvvA bvvyear bvvof bvvtuition bvvnow bvvcosts bvv$17,000. bvvWhich
bvvof bvvthe bvvfollowing bvvhas bvvoccurred?
A.
The bvvtuition bvvinvestment bvvhas bvvexperienced bvva bvvnegative bvvreal bvvreturn.
B.
The bvvtuition bvvinvestment bvvhas bvvexperienced bvva bvvnegative bvvreturn.
C.
The bvvtuition bvvinvestment bvvhas bvvexperienced bvva bvvpositive bvvreal bvvreturn. bvv-
bvvAnswerA.
The bvvtuition bvvinvestment bvvhas bvvexperienced bvva bvvnegative bvvreal bvvreturn.
When bvva bvvclient bvvhas bvvless bvvflexibility bvvto bvvadjust bvvspending, bvvthe bvvclient's
bvvportfolio bvvshould bvvbe
A.
more bvvin bvvrisky bvvassets bvvand bvvless bvvin bvvsafe bvvassets.
B.
, less bvvin bvvrisky bvvassets bvvand bvvmore bvvin bvvsafe bvvassets.
C.
only bvvin bvvrisky bvvassets. bvv- bvvAnswerB.
less bvvin bvvrisky bvvassets bvvand bvvmore bvvin bvvsafe bvvassets.
An bvvinvestor's bvvpreference bvvfor bvvcertainty bvvimplies bvvthat
A.
the bvvinvestor bvvneeds bvva bvvreward bvvfor bvvtaking bvvrisk.
B.
the bvvinvestor bvvwill bvvnot bvvinvest bvvin bvvrisky bvvassets.
C.
the bvvinvestor bvvis bvvintolerant bvvof bvvany bvvmarket bvvrisk. bvv- bvvAnswerA.
the bvvinvestor bvvneeds bvva bvvreward bvvfor bvvtaking bvvrisk.
How bvvmuch bvvwould bvva bvvclient bvvpay bvvfor bvva bvvrisky bvvinvestment bvvwith bvva bvv50
bvvpercent bvvprobability bvvof bvvit bvvbeing bvvworth bvv$3,000 bvvand bvv50 bvvpercent
bvvprobability bvvof bvvit bvvbeing bvvworth bvv$8,000 bvvin bvvone bvvyear bvvassuming bvva
bvvnatural bvvlog bvvutility bvvfunction?
A.
$4,898.98
B.
$5,500.00
C.
$5,588.23 bvv- bvvAnswerA.
$4,898.98
A bvvrisk-tolerant bvvinvestor
A.
prefers bvvmore bvvinvestment bvvcertainty bvvthan bvva bvvrisk-averse bvvinvestor.
B.
will bvvalways bvvchoose bvvthe bvvriskiest bvvfinancial bvvasset.
C.
is bvvwilling bvvto bvvconsider bvva bvvmore bvvuncertain bvvinvestment bvvpayout, bvvall bvvother
bvvthings bvvbeing bvvequal. bvv- bvvAnswerC.
is bvvwilling bvvto bvvconsider bvva bvvmore bvvuncertain bvvinvestment bvvpayout, bvvall bvvother
bvvthings bvvbeing bvvequal.
The bvvthree bvvelements bvvof bvva bvvfinancial bvvgoal bvvare
A.
goal bvvamount, bvvtime bvvhorizon, bvvand bvvinvestment bvvrisk.
B.
goal bvvamount, bvvtime bvvhorizon, bvvand bvvgoal bvvflexibility.
C.
goal bvvamount, bvvinvestment bvvrisk, bvvand bvvinvestment bvvvehicle. bvv- bvvAnswerB.
goal bvvamount, bvvtime bvvhorizon, bvvand bvvgoal bvvflexibility.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller bonie314. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78252 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now