Questions from Personal Finance


Q: What are the functions of a risk manager?

What are the functions of a risk manager?

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Q: Contrast business and personal risk and separate the household’s risk exposure into

Contrast business and personal risk and separate the household’s risk exposure into one or the other.

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Q: Which type of insurance might be more susceptible to moral hazard:

Which type of insurance might be more susceptible to moral hazard: term or whole life? Why?

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Q: A person who trades in his 15-year-old automobile

A person who trades in his 15-year-old automobile and purchases a new car with disk brakes is practicing which method of managing risk?

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Q: How would you decide whether to transfer risk or share risk?

How would you decide whether to transfer risk or share risk?

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Q: Indicate what type of life insurance you would recommend for someone who

Indicate what type of life insurance you would recommend for someone who is scheduled to be financially independent in eight years. Why?

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Q: John was young and Lisa elderly. Discuss potential provider preferences.

John was young and Lisa elderly. Discuss potential provider preferences.

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Q: Gennaro purchased a stock for $24 that paid $2.

Gennaro purchased a stock for $24 that paid $2.00 at the end of each year in dividends (dividends remained level over time). He sold it four years later for $28 at the time of the last dividend paymen...

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Q: Explain why life insurance is so much more popular than disability insurance

Explain why life insurance is so much more popular than disability insurance.

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Q: For what type of retired individuals is long-term care insurance

For what type of retired individuals is long-term care insurance particularly appropriate?

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