Anyone Who Presents a Check for Payment Makes Certain Warranties

question 26

Multiple Choice

Anyone who presents a check for payment makes certain warranties.Which of the following is NOT one of those warranties?

• A)that he or she is a holder
• B)that the check has not been altered
• C)that the drawee is a solvent institution
• D)that all signatures are authentic

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Definitions:

Systematic Risk

Systematic risk is the part of an investment's risk that is attributable to factors that affect the entire market or asset class, such as economic, political, or natural events, and cannot be eliminated through diversification.

Security Characteristic Line

A graphical representation of the expected return of an asset as a function of the return on the market portfolio, illustrating the asset's systematic risk.

Excess Return

The return achieved by an asset that exceeds the risk-free rate of return.

Excess Returns

Excess returns refer to the returns achieved above a benchmark or a risk-free rate of return.