Questions from General Investment


Q: Project your Social Security benefits with the parameters of Section 21.

Project your Social Security benefits with the parameters of Section 21.6.

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Q: Give another example of adverse selection

Give another example of adverse selection

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Q: In addition to expected longevity, what traits might affect an individual’s

In addition to expected longevity, what traits might affect an individual’s demand for a life annuity?

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Q: Give another example of a moral hazard problem.

Give another example of a moral hazard problem.

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Q: The same ship owner advertises a tariff whereby the freight charged per

The same ship owner advertises a tariff whereby the freight charged per pound for all cargo will be the same. What kind of cargo can the ship owner expect to attract?

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Q: What type of investors would be interested in a target date retirement

What type of investors would be interested in a target date retirement fund? Why?

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Q: What is the insurance aspect of the Social Security annuity?

What is the insurance aspect of the Social Security annuity?

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Q: Why does a progressive tax code produce a retirement annuity for a

Why does a progressive tax code produce a retirement annuity for a middle-class household that is similar to that which would follow from a flat tax?

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Q: With no taxes or inflation (Spreadsheet 21.1), what

With no taxes or inflation (Spreadsheet 21.1), what would be your retirement annuity if you increase the savings rate by 1%?

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Q: With a 3% inflation rate (Spreadsheet 21.2),

With a 3% inflation rate (Spreadsheet 21.2), by how much would your retirement annuity grow if you increase the savings rate by 1%? Is the benefit greater in the face of inflation?

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