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Fynjy0 [20]
3 years ago
11

LMN Insurance Company is concerned about its exposure to hurricane losses for property risks it insured on the Gulf Coast. LMN b

orrowed money from investors by issuing financial securities. LMN promised to repay the money it borrowed with interest if hurricane losses do not exceed a specified level.
If hurricane losses exceed the specified level, LMN will repay less than it borrowed and use the extra money to fund hurricane losses.
The securities that LMN issued are:

a) Futures contracts.
b) Weather options.
c) Catastrophe bonds.
d) Call options.
Business
1 answer:
ELEN [110]3 years ago
3 0

Answer:

c) Catastrophe Bonds

Explanation:

These type of bonds are also known as the CAT bonds, and they are issued  at any catastrophic event which is foreseen in the future. Basically these are insured linked securities that are used in the process of managing risks that are associated with the catastrophic events such as mentioned in the question i.e hurricane.

Any investor before investing in these bonds should fully understand what type of bonds are these because they posses a greater risk of low return and are very different from conventional bonds.

Hope this helps.

Thanks buddy.

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The beginning capital balance shown on a statement of owner's equity is $100,000. Net income for the period is $50,000. The owne
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Answer:  $125,000

                         

Explanation: In simple words, owner's equity refers to the funds that are contributed by the owners of the capital for effectively conduction the operations of the business.

Any profit that the organisation made during a year is treated as a return to the capital and is added to the initial capital while drawing from the capital results in decrease in the available fund for operations.

   Hence the year end balance of the capital in given case is, $1000,000 + $50,000 - $25,000 = $ 125,000

4 0
3 years ago
As a result of increased competition​ (higher number of firms n​) in a monopolistically competitive​ industry, A. low minus cost
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Answer: D, overall productivity in the industry decreases.

Explanation: a producer can gain less market share from a given price cut.

Increased in competition means there are more firms and this will not effect consumers decisions.

5 0
3 years ago
The approved detail design resulting from the __________ serves as a basis for making the decision to begin production. Systems
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Answer: Critical Design Review

Explanation:

A Critical Design Review is referred to as a review that's fine in order o ensure that a system can be able to move into fabrication, and test and also ensure that the stated performance requirements are met.

The approved detail design resulting from the critical design review serves as a basis for making the decision to begin production.

3 0
2 years ago
The "decision model that computes the difference between the present value of the investment's net cash inflows, using a desired
DIA [1.3K]

Answer:

C) Net present value

Explanation:

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And, the internal rate of return is that return in which the Net present value come zero.

The average rate of return shows a ratio between the average net profit and the average investment.

In mathematically,

Net present value = Present value of all yearly cash inflows after applying discount factor - initial investment

7 0
3 years ago
nikolaos is an ordained minister. he moved to indianapolis and lives in the nearby furnished parsonage, which is 1,500 square fe
siniylev [52]

Option D. The way that Nikolaos would be able to determine for the parsonage of the Indianapolis would be: Consult an Indianapolis realtor for a documented quote with comparable listings for the house.

<h3>What is meant by parsonage?</h3>

Old French personage and medieval Latin personagium, both of which imply "home for a person," are the origins of the word "parsonage." A house in the early church was frequently not much more than a priest's place to sleep.

A clergy house is where one or more priests or other religious leaders currently live or previously lived. Such homes may be referred to as manse, parsonage, rectory, or vicarage, among other names.

A recent sale of a property in your neighborhood that is comparable to yours in terms of location, size, condition, and features is known as a "comp," short for "comparable sale."

Comparable (similar) homes have to have equivalent market values, and thus comparable assessed values. Comparing the assessment of your home to the assessments of other comparable homes is one approach to determine whether it has been done fairly or uniformly.

Read more on realtors here:

brainly.com/question/29452584

#SPJ1

Nikolaos is an ordained minister. He moved to Indianapolis and lives in the nearby furnished parsonage, which is 1,500 square feet. His previous role was in Washington, D.C.; the fair rental value (FRV) of his parsonage (1,800 square feet) in Washington was $18,000/year.

How should he determine FRV for the Indianapolis parsonage?

Use the same FRV as the Washington, D.C. parsonage.

Reduce the Washington FRV by the size ratio of the new parsonage to the Washington home.

Estimate FRV based on other properties available in the area.

Consult an Indianapolis realtor for a documented quote with comparable listings for the house.

6 0
1 year ago
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