Question
75-) You are a member of a defined benefit plan that pays a 2% benefit for each year of service based on your best five
75-)
You are a member of a defined benefit plan that pays a 2% benefit for each year of service based on your best five year's earnings. If you qualify for an unreduced pension and have worked for the company for 30 years, your pension will be
Select one:
a. 50 percent of the average of your best five years' earnings.
b. 60 percent of the average of your last five years' earnings.
c. The answer is unknown because the benefit must be calculated by an actuary.
d. 60 percent of the average of your best five years' earnings.
76-)
If John's stock return was -1% and the TSX stock index had a 3% return, the excess return of John's stock above the market is
Select one:
a. 2 percent.
b. -2 percent.
c. -4 percent.
d. 4 percent.
78-)
Which of the following bond mutual funds has both the lowest default risk and interest rate risk?
Select one:
a. T-bill
b. Short-term federal
c. Short-term high-yield
d. Short -term corporate
80-)
If you are considering trading in a used car for your new one, it is best to
Select one:
a. negotiate the price of the new car before advising the dealer you have a trade-in.
b. tell the dealer right away so he can figure your trade-in credit against the purchase price of your new car.
c. not trade the car in, but rather sell it yourself over the internet.
d. not be too concerned about the value given, since dealers are required to give you at least Blue Book value.
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