24. Which of the following do underwriters consider when determining insurance premiums: A. The probability that the insurance company will have to make a payment B. The size of the payment C. The number of insurance companies writing the same insurance D. All of the above 25. Valuation of an insurance company can be affected by which to the following? A. Changes in the payouts B. Changes in the regulations C. Both A and B above D. None of the above 26. The value of any financial asset or company can be determined by: A. The future value of its cash balance B. The present value of its future cash flows C. Its book value D. All of the above. 27. In the valuation model in #26 above the following change can affect the cash flow and therefore the value A. Changes in the risk premium B. Changes in economic growth C. Changes in the location of the company D. All of the above 28. In the valuation model in #26 above the following change can affect the required rate of return and therefore the value A. Changes in the risk free rate B. Changes in the risk premium that investors require to invest in securities firm C. Both A and B D. None of the above. 29. The risk free rate is the interest rate paid for a risk free investment best determined by: A The return on short term US government securities B. The return on long term US government securities C. The return on AAA rated corporate bonds D The return on well diversified stock portfolio 30. The providing of brokerage services is a fundamental service securities firms offer. They are typically divided into which two types: A. Online and offline B. Full-service and discount C. Both A and B _D. None of the above 24. Which of the following do underwriters consider when determining insurance premiums: A. The probability that the insurance company will have to make a payment B. The size of the payment C. The number of insurance companies writing the same insurance D. All of the above 25. Valuation of an insurance company can be affected by which to the following? A. Changes in the payouts B. Changes in the regulations C. Both A and B above D. None of the above 26. The value of any financial asset or company can be determined by: A. The future value of its cash balance B. The present value of its future cash flows C. Its book value D. All of the above. 27. In the valuation model in #26 above the following change can affect the cash flow and therefore the value A. Changes in the risk premium B. Changes in economic growth C. Changes in the location of the company D. All of the above 28. In the valuation model in #26 above the following change can affect the required rate of return and therefore the value A. Changes in the risk free rate B. Changes in the risk premium that investors require to invest in securities firm C. Both A and B D. None of the above. 29. The risk free rate is the interest rate paid for a risk free investment best determined by: A The return on short term US government securities B. The return on long term US government securities C. The return on AAA rated corporate bonds D The return on well diversified stock portfolio 30. The providing of brokerage services is a fundamental service securities firms offer. They are typically divided into which two types: A. Online and offline B. Full-service and discount C. Both A and B _D. None of the above