What is meant by the conditional future spot rate?
A) the forward rate
B) the forecasted future spot rate
C) the conditional variance of the probability distribution of future spot rates
D) the conditional mean of the probability distribution of future spot rates
Answer: D
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Complete the following table to show how FOB terms apply to merchandise inventory purchased by a merchandiser
FOB Term When does the title to the goods transfer to the buyer? Who pays the freight? Shipping Point Destination What will be an ideal response
Which of the following statements pertaining to life insurance premiums is NOT correct?
A) The interest factor is a premium charge based on assumed lost earnings after claims. B) An insurance company invests the premium money it collects to earn interest. C) The expense factor in premium ratemaking frequently is referred to as loading. D) For an insurance company, the costs of doing business must be reflected in its premiums."