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
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![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0637fe70-7f48-40df-b426-2d008ce45af8%2Fce445908-3c0c-41c6-a409-011acf729fd5%2Fk9agggn_processed.jpeg&w=3840&q=75)
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.
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