When Checking a Set of Duals for Adequate Spacing Between

question 62

Multiple Choice

When checking a set of duals for adequate spacing between them,which specific location MUST be checked?

• A) 6 o'clock position
• B) 12 o'clock position
• C) both the 3 and 9 o'clock positions
• D) both the 10 and 4 o'clock positions

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Definitions:

Required Return

The minimum rate of return on an investment that is necessary for an investor to consider making that investment.

Market Risk

The risk of losses in positions arising from movements in market prices.

Diversify

The strategy of spreading investments across various financial assets, industries, or other categories to reduce risk.

Capital Asset Pricing Model

A model that describes the relationship between systematic risk and expected return for assets, particularly stocks; it is used to estimate the cost of equity.