Your firm recently approved the sale of a group variable annuity that is not registered. RRs will be compensated for sales of the unregistered annuity. Once the firm has given approval for such transactions, what is the firm's responsibility?[A] Only when commissions are not paid on the sale of this security must the firm establish policies and conditions for transactions in the security.
[B] Supervision of transactions in this security or other securities is not required, so long as the securities are only sold to the close friends and family members of registered representatives.
[C] Since group variable annuities are not considered securities, the firm has no recordkeeping responsibilities regarding sales of such annuities.
[D] All transactions and involvement in the sale of such securities by registered representatives must be supervised by the firm.

Your company is starting a new r& d initiative: a development of a new drug that dramatically reduces the addiction to smoking. the expert team estimates the probability of developing the drug succesfully at 60% and a chance of losing the investment of 40%. if the project is successful, your company would earn profits (after deducting the investment) of 9,000 (thousand usd). if the development is unsuccessful, the whole investment will be lost -1,000 (thousand usd). your company's risk preference is given by the expected utility function: u(x) v1000 +x, where x is the monetary outcome of a project. calculate the expected profit of the project . calculate the expected utility of the project . find the certainty equivalent of this r& d initiative . find the risk premium of this r& d initiative e is the company risk-averse, risk-loving or risk-neutral? why do you think so?