What financial risk should Alexis focus on first in her review with Tomas? a) Debt. b) Inflation. Oc) Longevity. d) Loss of income.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question
Question 8
Alexis, a life insurance representative, met with Tomas to discuss, among other
financial matters, Tomas' concerns and life and disability insurance needs. Aged 32,
Tomas is self-employed, having been laid off from a salaried position one year ago.
He has since started a successful business of his own. In general, Tomas is fairly
satisfied with his life: he and his wife live in a fully detached home with a small
mortgage. And the mortgage carries a low rate of interest-a rate that Tomas does
not expect will change much in the foreseeable future, given Canada's low Consumer
Price Index.
What financial risk should Alexis focus on first in her review with Tomas?
a) Debt.
b) Inflation.
c) Longevity.
O d) Loss of income.
Transcribed Image Text:Question 8 Alexis, a life insurance representative, met with Tomas to discuss, among other financial matters, Tomas' concerns and life and disability insurance needs. Aged 32, Tomas is self-employed, having been laid off from a salaried position one year ago. He has since started a successful business of his own. In general, Tomas is fairly satisfied with his life: he and his wife live in a fully detached home with a small mortgage. And the mortgage carries a low rate of interest-a rate that Tomas does not expect will change much in the foreseeable future, given Canada's low Consumer Price Index. What financial risk should Alexis focus on first in her review with Tomas? a) Debt. b) Inflation. c) Longevity. O d) Loss of income.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Investment in Stocks
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education