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CTFA – Certified Trust and Financial Advisor

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Showing 7–9 of 20 questions

Question 7

Sometimes, as a condition of receiving an installment loan, a borrower is required to buy credit life insurance. From borrower’s perspective, credit life insurance not a good deal because:

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    It’s very costly
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    It does little more than give lenders a lucrative source of income
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    It increases market interest charges
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    It increases inflation
Question 8

Several insurance provisions affect a health insurance plan’s value to you. Some important provisions address:

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    The persons and places covered
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    Cancellation
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    Re-existing conditions
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    Rehabilitation coverage
Question 9

The principal reasons for using the Sharpe ratio when calculating a portfolio’s performance are:

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    It indicates the percentage return above/below the risk-free rate for each unit of risk taken
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    It will always be quoted on a rolling quarterly basis
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    A positive Sharpe ratio will always guarantee positive returns
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    The higher the number, the more a portfolio manager can be said to have added value