Robert Campbell and Carol Morris are senior vice-presidents of the Mutual of Chicago Insurance Company. They are co-directors of the company’s pension fund management division, with Campbell having responsibility for fixed income securities (primarily bonds) and Morris being responsible for equity investments. A major new client, the California League of Cities, has requested that Mutual of Chicago present an investment seminar to the mayors of the represented cities. Campbell and Morris, who will make the actual presentation, have asked you to help them by an­swering the following questions. How do you determine the value of a bond

The board of directors of the Cortez Beach Yacht Club (CBYC) is developing plans to acquire more equipment for lessons and rentals and to expand club facilities. The board plans to purchase about $50,000 of new equipment each year and wants to begin a fund to purchase a $600,000 piece of property for club expansion.     The club manager is concerned about the club’s capability to purchase equipment and expand its facilities. One club member has agreed to help prepare the following financial statements and help the manager ascertain whether the plans are realistic. Additional information follows the financial statements.    CORTEZ BEACH YACHT CLUB Statement of Income (Cash Basis) For the Year Ended October 31     Year 9     Year 8 Cash revenues           Annual membership fees $ 710,000   $ 600,000 Lesson and class fees   468,000     360,000 Miscellaneous   4,000     3,000 Total cash received $ 1,182,000   $ 963,000 Cash costs           Manager’s salary and…

Carefully read the following situation and data, and answer the questions that follow: You have recently been appointed as chief investment officer of a major charitable foundation. Its large endowment fund is currently invested in a broadly diversified portfolio of stocks (60 percent) and bond (40 percent). The foundation's board of trustees is a group of prominent individuals whose knowledge of modern investment theory and practice is superficial. You decide a discussion of basic investment principles would be helpful.

You have been appointed as a Senior Advisor on Insurance Regulations and Environment by Cool Investors who are venturing into insurance and seeking to obtain a license to operate in the Ghanaian Market. The Managing Director is relying on you to understand basic insurance principles in preparation for a discussion with potential shareholders on the subject. There are several principles that underpin insurance. Discuss in detial two of these fundamental principles of insurance, highlighting the following: (a) The role of the law of large numbers and large numbers in general (b) The impact of undercutting on the selected principles of insurance The question must be answered citing Ghanaian Cases and Examples in addition to experiences of other jurisdictions.