1 Which of the following investors of a segregated funds contract will NOT benefit from the contract's maturity guarantee? ZnFadkJEYm91SVgxL1h6YUR1CUU5Zz09 > b. a. O Craig, whose contract is nearing maturity but the fund's market value had reduced drastically Megan, who decided to reset her segregated funds contract which is maturing in two years Alan, who is surrendering his segregated funds contract which he purchased five years ago d. O Zoey, who withdrew some funds from her contract on which her spouse is the beneficiary ZnFadkJEYm91SVgxL1h6YUR1cUU5Zz09 > C.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1 Which of the following investors of a segregated funds contract will NOT benefit from the contract's
maturity guarantee?
ZnFadkJEYm91SVgxL1h6YUR1CUU5Zz09
>
b.
a. O Craig, whose contract is nearing maturity but the fund's market value had reduced drastically
Megan, who decided to reset her segregated funds contract which is maturing in two years
Alan, who is surrendering his segregated funds contract which he purchased five years ago
d. O Zoey, who withdrew some funds from her contract on which her spouse is the beneficiary
ZnFadkJEYm91SVgxL1h6YUR1cUU5Zz09 >
C.
Transcribed Image Text:1 Which of the following investors of a segregated funds contract will NOT benefit from the contract's maturity guarantee? ZnFadkJEYm91SVgxL1h6YUR1CUU5Zz09 > b. a. O Craig, whose contract is nearing maturity but the fund's market value had reduced drastically Megan, who decided to reset her segregated funds contract which is maturing in two years Alan, who is surrendering his segregated funds contract which he purchased five years ago d. O Zoey, who withdrew some funds from her contract on which her spouse is the beneficiary ZnFadkJEYm91SVgxL1h6YUR1cUU5Zz09 > C.
Expert Solution
Step 1

In segregated funds, investors have been given guarantee of 75% or 100%(in some contracts) of capital invested if you are holding the investment till maturity or investor's death whichever is earlier.

Guarantee amount is given after deducting your all withdrawals.

If you are not holding the investment till maturity, you will not get the benefit of contract maturity guarantee.

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