In a Contract for FOB Place of Shipment, the Risk

question 25

True/False

In a contract for FOB place of shipment, the risk of loss passes to the buyer at the same time as title does: when the goods are delivered to the carrier, that is, at the time and place of shipment.

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Definitions:

Risk-Free Rate

The risk-free rate is the theoretical return on an investment with zero risk, serving as a benchmark for measuring investment performance.

Market Risk Premium

The additional return an investor expects from holding a risky market portfolio instead of risk-free assets, critical for assessing investment risk.