What is not an objective of the Insurance Management process?

a$.$ Decide when and what to insure

b$.$ Manage purchase and use of insurance

c$.$ Obtain efficient pricing for insurance needs

d$.$ Seek maximum policy cost

The Company J portfolio consists of three stocks, $30\%$ of Stock A with a return of

$5\mathrm{.}00\%,60\%$ of Stock B with a return of $3\mathrm{.}00\%,$ and $10\%$ of Stock C with a return of

$2\mathrm{.}00\%.$ What is the Company J portfolio return?

a$.3\mathrm{.}60\%$

b$.3\mathrm{.}40\%$

c$.3\mathrm{.}50\%$

d$.3\mathrm{.}34\%$

The risk$-$free rate of return is $2\mathrm{.}20\%$ and the historical stock market average rate of return

is $6\%.$ If Company $M$ has a beta of $1\mathrm{.}40,$ what is their required rate of return for capital

asset pricing?

a$.7\mathrm{.}39\%$

b$.7\mathrm{.}60\%$

c$.0\mathrm{.}04\%$

d$.7\mathrm{.}52\%$

The stock of a manufacturing company is priced so that its expected rate of return is

below its required rate, as calculated by the Capital Asset Pricing Model $($CAPM$).$ Which

of the following will occur in an efficient capital market?

a$.$ Buying pressure for the firm's stock will drive the price down

b$.$ Selling pressure for the firm's stock will drive the price up

c$.$ Selling pressure for the firm's stock will drive the price down

d$.$ Buying pressure for the firm's stock will drive the price up