An Investor Owns a Security That Is Expected to Return

question 53

Multiple Choice

An investor owns a security that is expected to return 12% in a booming economy and 4% in a normal economy. The overall expected return on the security is 7.80%. Given there are only two states of the economy, what is the probability that the economy will boom?

• A)35.0%
• B)37.5%
• C)40.0%
• D)45.0%
• E)47.5%

Recognize the existence and creation of implied warranties in sales contracts.

Understand how express warranties are created and how they differ from opinions or representations.

Distinguish between various defenses available to manufacturers or sellers in product liability cases.

Discern the extent of liability under the Restatement (Third) of Torts for commercial sellers and distributors.

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Definitions:

Classified Ads

Short advertisements placed in a newspaper, magazine, or online, usually categorized by topic, such as jobs, real estate, and services.

Flat Fee

A pricing structure where a single fixed rate is charged for a service, regardless of usage or time required.

Résumés

Written compilations of a person's education, work experience, qualifications, and accomplishments, used as part of a job application.

Part-Time

Employment with fewer hours per week compared to full-time positions, offering limited work time and often fewer benefits.