My brother-in-law worked as a full-time school teacher in San Diego for 35 years

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My brother-in-law worked as a full-time school teacher in San Diego for 35 years. When he completed his 35 years of service, he retired and now receives -- based on his salary and years of service -- $6,000 per month for the rest of his life. This type of employer-sponsored retirement plan is best described with which of the following phrases:

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Question 182 pts

A company's market capitalization is determined by multiplying the total number of stock shares that have been issued times which of the following:

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Question 192 pts

As you may have noticed, the Salt Lake City Airport is undergoing a massive renovation process that will be paid for through the sale of municipal bonds. Recently, Airport leaders told the City Council that they underestimated the cost of the project and needed another $350 million, to be raised via additional bonds. The Airport leaders were quick to point out that the additional bonds would not require an increase in property or sales taxes paid by the city's citizens because the bonds would be repaid by user fees that would be collected from airlines and future air passengers. The type of bonds that are financing the airport renovation project are called:

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Question 202 pts

What is the name of the mutual fund investor expense that is deducted from the investor's account each year regardless of fund performance yet is justified as covering the expenses of advertising the fund and paying a commission to the person who sold (brokered) the fund?

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Question 212 pts

All of the following were presented as effective methods of reducing overall investment risk EXCEPT:

Explanation / Answer

1. Ans is "Defined benefit"

Defined benefit is a type of pension plan where employer promises to pay a specified pension payment after retirement. Amount of the pension is determined by annual earnings of that employee during his tenure of working, no. of years he has served the office. Here also when my brother-in-law is retiring as a school teacher from san diego school after 35 years of service, he is receiving $6,000 per month as per the Defined benefit plan.

2. Ans is "Price per share"

Market capitalizaion is the market value of a company's outstanding shares. Formula for market caplitalization of a company = Price per share * Numbers of shares in issue

3. Ans is "Revenue Bond"

Revenue Bond is a municipal bond which are supported by revenue of some specific profects. Here airport authority told city council to raise Revenue bond and bonds would be repaid from the reveunes of airlines and future air passengers. Revenue bonds are municipal bonds that finance income producing projects and are secured bt specific revnue source.

4. Ans is "12b-1 Fee"

12b-1 fee is a type of fee assessed by mutual fund to its shareholders. The fees covers the expense of marketing OF mutual funds and its legal. Their are 2 types of fees covered under 12b-1 fees. First is Distribution expense includes cost of advertising, printing and mailing the prospectus, and compensation of brokers. Second is shareholders service expense in which expense related to employment of people to solve quieries are related.

5. Ans is "Market timing"

Market timing can reduce risk but this is not the best way to reduce risk. We always cant monitor market and we are unable to decide on time basis that we need to hold the stocks or need to sell them. Their are no ways to know in advance which approach would be better. So we cant rely on market timing to reduce our investment risk.

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