Which of the Following Is True in the Event That

question 62

Multiple Choice

Which of the following is true in the event that an assignee does not provide a notice of assignment to the obligor?

• A)The assignee's only course of action is to sue the obligee for damages.
• B)The assignee cannot sue the assignor for damages.
• C)The obligor's only recourse is to sue the assignee for damages.
• D)The assignee cannot sue the obligor to recover payment.

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Definitions:

Characteristic Line

In finance, a line that describes the relationship between the returns on a stock and the returns on the market, used in the Capital Asset Pricing Model (CAPM).

Stable Equilibrium

A state in which a system, once disturbed, returns to its original condition because the equilibrium is stable.

Expected and Required Returns

The returns that investors anticipate or demand from an investment considering its risk, often guiding investment decisions.

SML

Stands for Security Market Line; it represents the relationship between the expected return of an investment and its risk in the capital asset pricing model (CAPM).