Answer:
option (c) $875 per year
Explanation:
Given;
Average cost of collision claims for careful drivers = $500 per year
Average cost of collision claims for for poor drivers = $3000 per year
Poor drivers known by the company = 15%
thus,
Careful drivers = (100% - 15%) = 85%
Therefore,
Insurance company's breakeven price for the collision insurance
= (Poor drivers known × Average cost of collision for poor drivers ) +( Careful drivers × Average cost of collision claims for careful drivers)
= 0.15 × $3000 + 0.85 × $500
= $450 + $425
= $875 per year
Hence, the correct answer is option (c) $875 per year
Bank customers should reconcile their records frequently with bank statements to prevent their checks from bouncing. They should frequently check the record of their balance in the account and the transactions being made to make sure that th checks they issue will still be valid.
Hey there
Total Quality Management<span> (</span>TQM<span>) is a comprehensive and structured approach to an organizational </span><span>management.
</span>Total Quality Management refers to <span>systems that focus on quality. Make the quality more better and less cheaper. The better the quality of the item, the better they will make a profit. </span>
Answer:
6.37%
Explanation:
Annual yield is the annual dividend yield of a bond.
Formula for annual yield = Annual dividend amount / Current price of the bond
Annual dividend amount = Annual interest rate * Face value
= 6% * $5,000
= <u><em>$300</em></u>
Current price = 94.125 means that the bond price is 94.125% of the Face value
Current price = 0.94125* 5000 = <u><em>$4,706.25</em></u>
Therefore, annual yield = 300/4,706.25 = 0.0637 or 6.37%
Answer:
the expected return on the portfolio is 15.50%
Explanation:
The computation of the expected return on the portfolio is shown below:
Total investment is
= $2,700 + $3,800
= $6,500
Now
Expected return of portfolio is
= ($2,700 ÷ $6,500) × 12 + ($3,800 ÷ $6,500) × 18
= 4.98% + 10.52%
= 15.50%
Hence, the expected return on the portfolio is 15.50%
