A Contract Between E-Debits, Inc

question 15

Multiple Choice

A contract between E-Debits, Inc., and First Credit Corporation includes a provision excluding liability as a result of fraud. This provision is

• A) enforceable because the parties are protected from liability.
• B) enforceable because the parties consented to it.
• C) enforceable if the parties have equal bargaining power.
• D) not enforceable.

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Definitions:

Investing

The process of distributing funds with the aim of achieving returns or financial gain.

Form

A specific type of document or report required by regulatory agencies for various financial filings and disclosures.

CAPM

The Capital Asset Pricing Model, a theory used to determine the expected return on investment by correlating the risk and the non-diversifiable risk of the market.

Treynor Measures

A performance metric that assesses the returns earned on a portfolio in excess of the risk-free rate, adjusted for market risk.