Answer:
Forming.
Explanation:
The forming stage includes a time of direction and acclimating. Uncertainty is high during this stage, and individuals are searching for leadership and authority. A member who declares authority or is educated might be hoped to take control.
Answer:
nominal interest rate = 4% annual
effective interest rate = 5.56% annual
Explanation:
the bond's nominal rate is basically the coupon rate
to calculate the bond's effective interest rate we must calculate its yield to maturity:
YTM = [coupon + [(face value - present value) / n]} / [(face value + present value) / 2]
- coupon = $1,000 x 4% x 1/2 = $20
- FV = $1,000
- PV = $800
- n = 40
YTM = [20 + [(1,000 - 800) / 40]} / [(1,000 + 800) / 2]
YTM = 25 / 900 = 2.777 semiannual ⇒ 5.56% annual
Answer:
Holding other factors constant, a stock portfolio has more volatility when its individual stock volatilities are high and its individual stock returns have high correlations.
Explanation:
In Modern Portfolio Theory (MPT), the individual behavior of each investment is viewed and evaluated based on how it affects the overall portfolio's risk and return. For this particular case, all <em>individual stock volatilities</em> are <u>high</u>, which means the <em>overall portfolio volatility</em> is <u>high</u> as there is no <em>diversification</em>. Adding to that, having <em>highly correlated</em> stock return increases the volatility of the portfolio even more, as there is a higher chance of them all declining at once.
<span>The death benefit of a(n) variable and universal life insurance policy may go down because of poor investment returns.
Universal life insurance and variable life insurance are two types of permanent life insurance, in this case if the the person who insured dies any time</span><span> as long as there is enough cash value to pay the costs of insurance in the policy, the death benefit will be paid. </span>
