Pat Is Pledging at the Delta Upsilon Delta (DUD)fraternity in Order

question 25

Multiple Choice

Pat is pledging at the Delta Upsilon Delta (DUD) fraternity in order to become a member.As part of his initiation,he must eat a piece of cheese that is on a mousetrap that has been set to trap a mouse.He tries,but the trap slams shut on his nose,injuring him.Pat files a products liability suit against the hardware store which sold the mousetrap to the fraternity members.Which of the following,if true,would allow the hardware store to avoid liability?

• A) The store exercised reasonable care in selling the mousetrap.
• B) It was an unforeseeable misuse for anyone to use a mousetrap in this way.
• C) Any defect in the mousetrap was caused by the manufacturer,not the hardware store.
• D) Pat was not the purchaser from the hardware store.

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Definitions:

Covariances

A measure of the degree to which two variables move in relation to each other.

Mean-Variance Efficient

A portfolio construction strategy that aims to achieve the highest expected return for a given level of risk by optimizing the mix of investments.

Expected Returns

The anticipated return on an investment, based on historical averages or statistical analyses.

Variances

Statistical measures that represent the dispersion of data points in a data set relative to its mean, indicating how spread out the data is.