1) You are presented with the following information for HiReturns Insurance Company. Calculate the 2015 ROI for HiReturns. To get full credit, you must show all calculations. (You may round all percentages to the nearest 0.1 percent).

2015 premiums: $450 million

2015 average investment assets: $1050 million

2015 average equity: $300 million

2015 combined ratio: 102%

2015 pretax investment return: 4.7% (please note that this is a pretax number, and treat accordingly!)

2015 marginal tax rate: 36%