Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
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Answer:
Misstatement of age
Explanation:
Based on the information provided within this question it can be said that the term that describes what is happening in this situation would be Misstatement of Age. Like mentioned in the question this is a provision in many life insurance policies which adjusts the individuals premium to the actual price based on their age if there was an error with the individuals age in the policy. Which is exactly what has happened to Lisa Smith.
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Thank you for posting your question here at brainly. The rate of return on the invest is 500%.
ROI<span> is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different </span>investments<span>. The </span>return on investment<span> formula is: </span>ROI<span> = (Net Profit / Cost of </span>Investment<span>) x 100.
</span>
therefore: 25,000/ 5000 = 5 x 100 = 500%
Answer:
The answer is 14.87%
Explanation:
Solution
Given that:
A large company stock had an average return of =12.59%
The average risk free rate = 2.58%
A small company stocks average is =17.45
The next step is to find the risk premium on small-company stocks for this period
Thus,
The risk premium on small-company stocks = Average return on small-company stocks - average risk-free rate
So,
Risk premium on small-company stocks = .1745 - 0.258
=0.1487
Therefore the risk premium on small company stocks for the period was 14.87%