It is essential to find the right customer. This includes background research that allows successful identifying of the target audience and then directing sales specifically to those customers.
Answer:
11.4%
Explanation:
Given that,
Average annual return on the S&P 500 Index from 1986 to 1995 = 16.20%
Average annual T-bill yield during the same period = 4.80%
Market risk premium is the difference between the expected return on the portfolio (market) and the risk free return.
Therefore,
Average market risk premium = Return on market - risk free return
= 0.1620 - 0.048
= 0.114 or 11.4%
Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Solution:
The journal entries for Geraths in 2020
July 1st Cr Dr
No entry No entry
September 1st Cr Dr
Cash 2000
Accounts receivable 400
Cost of goods sold 1100
Inventory 1100
Unearned service revenue 554
Sales Revenue 1846
October 15th Cr Dr
Cash 400
Unearned service revenue 554
Service revenue 554
Accounts receivable 400
I believe the answer is: Variable Universal Life
Variable Universal Life is considered as a long-term policy because the clause could only be activated if the policy holder is deceased.
This type of insurance usually would separate the death policies account with the investment account in order to offer more flexibility for the holder.