Louis Agreed to Provide All the Apples That Cindy's Cider

question 14

Multiple Choice

Louis agreed to provide all the apples that Cindy's Cider Mill will need at $3 per bushel unless weather conditions require additional labor to be hired.The rate would then be $3.50 per bushel.A freeze warning required Louis to hire 100 additional overtime workers, raising the cost per bushel to $4.75.Louis wants to get out of his contract.Can he?

• A)No, the parties expected the hardship and provided for it in their contract
• B)No, there is no hardship
• C)Yes, the contract is impracticable
• D)Yes, the freeze is a supervening event

Understand and calculate the variance and standard deviation of returns for both individual securities and portfolios.

Evaluate the pricing of securities (overpriced or underpriced) based on their expected return versus their actual return.

Understand the concept of risk premium and how it relates to the expected return of securities.

Utilize the security market line (SML) to assess the risk-return profile of securities and portfolios.

---

Definitions:

Erotomanic Delusions

Delusional beliefs held by some individuals that they are loved by and in a relationship with a person on whom they focus their attention (for example, a celebrity), a person with whom they have no relationship.

Stalkers

Individuals who persistently follow, watch, contact, or harass someone else in a way that feels threatening or invasive to the victim.

Delusions of Grandeur

A false belief in one’s own superiority, greatness, or power, often seen in psychiatric conditions like schizophrenia or bipolar disorder.

Schizophrenia Prevalence

refers to the proportion of the population that is affected by schizophrenia at a given time.