Jkl insurance company estimates that 14 out of every 100 homeowners it insures will file a claim each year. last year, jkl insured 200 homeowners. according to the law of large numbers, what should happen if jkl insures 2,000 homeowners this year? a. the total number of claims filled by jkl policy owners should decrease. b. the total dollar value of claims will decrease. c. the average size of loss will decline in value. d. the actual results will more closely approach the expected results.

The bonds issued by the south foot bear a coupon rate of 7.5 percent, payable semiannually. the bonds mature in 6.5 years, sell at par, and have a $1,000 face value. what is the yield to maturity

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out

Which of these is not a result of regular exercise