If Participation Rate in an Equity Indexed Entity Is 80

question 186

Multiple Choice

If participation rate in an equity indexed entity is 80% and the index increases 9%, the return credited to the annuity would be:

• A) 7.1%
• B) 7.2%
• C) 7.25%
• D) 7.3%

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Definitions:

Bias

A tendency to lean in a certain direction, either in favor of or against a particular thing, often in a way that is considered to be unfair.

Physical World

The aspect of the universe that is understood through physical phenomena, including matter and energy, as opposed to the abstract or spiritual realm.

Scientific Revolution

A paradigm shift in which a new scientific theory replaces a problematic paradigm.

Nicolaus Copernicus

A Renaissance mathematician and astronomer who proposed the heliocentric model of the universe, placing the Sun, not the Earth, at the center.