8. Benjamin has received a $80,000 gift from his grandmother and is trying to decide how to invest it. He thinks he would like to invest the money in stocks because he knows that the stock prices have been increasing by about 10% over the past few years. What aspect of investing interests Benjamin? a. Risk b. Return c. Income d. Diversification 9. Fundamentally, the life insurance premium is determined by the: a. forces of supply and demand b. use of mortality tables c. forces of competition d. guesswork of insurance executives 10. Which of the following situations is a person who could be insolvent? a. Assets $180,000; net worth $75,000 b. Assets $112,000; annual expenses $120,000 c. Assets $100,000; liabilities $130,000 d. Annual cash inflows $90,000; liabilities $100,000 11. Peter has net monthly income of 38,000. He has a monthly auto loan payment of $2,800, a student loan payment of $2,600, a mortgage payment of $14,000, and a credit card minimum payment of $3,000. What is Peter's debt-payments-to-income ratio? a. 14.2% b. 22.1% c. 36.8% d. 58.9% 12. Samuel has been named by Julia to follow her instructions and distribute her assets as she has specified in her will, pay her debts and collect any money owed to her. In what capacity is Samuel acting? a. A beneficiary b. A guardian c. An executor d. A trustee