Which of the Following Would a Court Require a Disputed

question 53

Multiple Choice

Which of the following would a court require a disputed agreement to clearly evidence in order for it to be deemed an enforceable contract?

• A) a mutually favourable intention to create legal relations
• B) a promise to enter into a contract on general terms
• C) an exchange of mutually adequate consideration
• D) a consensus as to each party's rights and obligations

---

Definitions:

APT

The Arbitrage Pricing Theory, a multifactor model used to determine asset returns based on the relationship between a financial asset's expected return and its risks.

Hedge Portfolios

Investment portfolios designed to reduce the risk of adverse price movements in an asset, often by using derivatives such as options and futures.

Risk Premiums

The extra return expected by investors for taking on the risk of an investment compared to a risk-free asset.

Mean-variance Efficient

A portfolio that offers the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.