FIN 2164 COMPREHENSIVE EXAM UPDATED QUESTIONS
AND ANSWERS RATED A+
✔✔travel insurance - ✔✔covers medical and evacuation costs when you travel
overseas
✔✔property insurance - ✔✔covers damage to buildings and equiptment
✔✔business interruptions insurance - ✔✔covers lost profits if something significantly
disrupts the ability to do business
✔✔directors and officers insurance - ✔✔covers cost of litigation against directors and
officers
✔✔liability insurance - ✔✔covers the cost of lawsuits against a business
✔✔workmens compensation - ✔✔covers the cost of on the job injuries to workers
✔✔How is insurance sold? - ✔✔insurance policies are sold by insurance agents
✔✔underwriting - ✔✔assessing the risk of an individual or company and setting the
appropriate price for the insurance policy
✔✔claims adjustor - ✔✔analyzing insurance claims to assess legitimacy and payout
requirements
✔✔investment management - ✔✔managing the insurance company's investments
✔✔risk management - ✔✔analyzing the insurance company's portfolio of
insurancepolicies to ensure that there is no excessive risk
✔✔actuary - ✔✔doing calculations that estimate the aggregate behavior and risk of a
large group of people
✔✔reinsurance - ✔✔insurance for insurance companies
✔✔What is institutional investment management? - ✔✔nstitutional managers manage
large pools of money on behalf of investors
✔✔Mutual funds - ✔✔raise money by selling shares to individual investors
✔✔Institutional money managers - ✔✔manage large amounts of money on behalf of
large investors such as very wealthy individuals, endowments, and pension plans who
don't have the time or staff to manage their own money
, ✔✔insurance companies - ✔✔invest the money that receive in premium payments from
their customers
✔✔pension funds - ✔✔invest money so that they have enough money in the future to
cover the pension payouts to retirees
✔✔hedge funds - ✔✔speculative investment funds that make bets on the markets
✔✔endowments - ✔✔Pools of money that have been donated over time to non-profit
institutions such as charities, universities and hospitals
✔✔family offices - ✔✔Groups that manage the money of extremely wealthy families
✔✔corporate investment funds - ✔✔funds operated by companies with large amounts
of excess cash that they need to invest
✔✔sovereign wealth funds - ✔✔funds operated by governments with excess cash
✔✔investment analyst - ✔✔analyzes potential investments and monitors existing
investments
✔✔porfolio manager - ✔✔in charge of managing the investment portfolio, including
choosing which investments to buy for the portfolio and which ones to sell from the
portfolio
✔✔trader - ✔✔Does the trades (buying and selling) on behalf of the portfolio manager
✔✔The CFA - ✔✔professional certification that is most widely recognized in the
institutional money management career path
✔✔investment sales - ✔✔selling investment products (stocks, bonds, etc.) to individuals
or financial institutions
✔✔wall street - ✔✔working as an investment banker, trader, salesperson, or research
analyst for a Wall Street firm
✔✔investment consulting firms - ✔✔firms that analyze the performance of money
managers and help clients find good ones
✔✔valuation consulting - ✔✔groups within large accounting firms that perform
valuations of companies and assets
✔✔What is an entrepreneur? - ✔✔someone who starts up and runs a business
AND ANSWERS RATED A+
✔✔travel insurance - ✔✔covers medical and evacuation costs when you travel
overseas
✔✔property insurance - ✔✔covers damage to buildings and equiptment
✔✔business interruptions insurance - ✔✔covers lost profits if something significantly
disrupts the ability to do business
✔✔directors and officers insurance - ✔✔covers cost of litigation against directors and
officers
✔✔liability insurance - ✔✔covers the cost of lawsuits against a business
✔✔workmens compensation - ✔✔covers the cost of on the job injuries to workers
✔✔How is insurance sold? - ✔✔insurance policies are sold by insurance agents
✔✔underwriting - ✔✔assessing the risk of an individual or company and setting the
appropriate price for the insurance policy
✔✔claims adjustor - ✔✔analyzing insurance claims to assess legitimacy and payout
requirements
✔✔investment management - ✔✔managing the insurance company's investments
✔✔risk management - ✔✔analyzing the insurance company's portfolio of
insurancepolicies to ensure that there is no excessive risk
✔✔actuary - ✔✔doing calculations that estimate the aggregate behavior and risk of a
large group of people
✔✔reinsurance - ✔✔insurance for insurance companies
✔✔What is institutional investment management? - ✔✔nstitutional managers manage
large pools of money on behalf of investors
✔✔Mutual funds - ✔✔raise money by selling shares to individual investors
✔✔Institutional money managers - ✔✔manage large amounts of money on behalf of
large investors such as very wealthy individuals, endowments, and pension plans who
don't have the time or staff to manage their own money
, ✔✔insurance companies - ✔✔invest the money that receive in premium payments from
their customers
✔✔pension funds - ✔✔invest money so that they have enough money in the future to
cover the pension payouts to retirees
✔✔hedge funds - ✔✔speculative investment funds that make bets on the markets
✔✔endowments - ✔✔Pools of money that have been donated over time to non-profit
institutions such as charities, universities and hospitals
✔✔family offices - ✔✔Groups that manage the money of extremely wealthy families
✔✔corporate investment funds - ✔✔funds operated by companies with large amounts
of excess cash that they need to invest
✔✔sovereign wealth funds - ✔✔funds operated by governments with excess cash
✔✔investment analyst - ✔✔analyzes potential investments and monitors existing
investments
✔✔porfolio manager - ✔✔in charge of managing the investment portfolio, including
choosing which investments to buy for the portfolio and which ones to sell from the
portfolio
✔✔trader - ✔✔Does the trades (buying and selling) on behalf of the portfolio manager
✔✔The CFA - ✔✔professional certification that is most widely recognized in the
institutional money management career path
✔✔investment sales - ✔✔selling investment products (stocks, bonds, etc.) to individuals
or financial institutions
✔✔wall street - ✔✔working as an investment banker, trader, salesperson, or research
analyst for a Wall Street firm
✔✔investment consulting firms - ✔✔firms that analyze the performance of money
managers and help clients find good ones
✔✔valuation consulting - ✔✔groups within large accounting firms that perform
valuations of companies and assets
✔✔What is an entrepreneur? - ✔✔someone who starts up and runs a business
