What Is the Legal Effect of a Financing Condition in an Offer

question 41

Multiple Choice

What is the legal effect of a financing condition in an offer?

• A) There is no contract until the vender provides the seller with financing.
• B) The transaction will not proceed unless the buyer's lender grants a mortgage.
• C) The lender must approve the price,deposit,and method of payment.
• D) The lender will be given control of the money needed to complete the deal.

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Definitions:

Nonsystematic Variance

The portion of an investment's variance that is due to factors specific to its issuer and not related to wider market movements.

Market Index

An indicator used to represent the performance of specific sectors or the market as a whole, often compiled from a set of selected stocks.

Active Portfolio

A portfolio that undergoes frequent trading and adjustments by a manager in an attempt to outperform the market or a specific benchmark.

Treynor-Black Model

A portfolio optimization model that blends a passive and an active portfolio for potential risk-adjusted returns superior to the market.