财务分析

问题如下：

The average return on fixed-income assets for NANLife in 2018 is closest to:

选项：

A.4.6%. B.4.8%. C.5.1%.

解释：

Solution

B is correct. The average return on fixed-income assets is calculated as follows: Investment income from fixed income ÷ Average fixed-income assets.

Investment income = Interest income + Gains/losses from fixed-income investments = $6,610 + $300 = $6,910.

Average fixed-income assets including debt securities + Loan and deposits = (1/2)($8,800 + $141,000) + (1/2)($9,000 + $130,800) = $144,800.

Average return = 6,910 ÷ 144,800 = 4.8%.

A is incorrect. It does not include the gains and losses on fixed-income investments:

6,610 ÷ 144,800 = 4.6%.

C is incorrect. It does not include the loans and deposits as fixed-income investments:

Average debt securities = ($141,000 + $130,800) × 1/2= $135,900.

6,910 ÷ 135,900 = 5.1%.