Andy Blake Got a Call Yesterday from Planet Bank, the Company

question 264

Multiple Choice

Andy Blake got a call yesterday from Planet Bank, the company that issued his credit card inquiring about an $85.00 charge made in Caracas, Venezuela. Upon learning that Andy had not made this purchase, the bank quickly took steps to cancel the card and issue a new one. Given the circumstances that Andy's credit card number had an illegal transaction, Andy may also want to:

• A) check his computer's firewall to make sure it's working.
• B) cancel his account with Planet Bank, altogether and eliminate credit cards from his life.
• C) check his credit report.
• D) diversify his spending habits by using one of several credit cards when making purchases.

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Definitions:

Risk-Free Rate

The theoretical return on investment with no risk of financial loss, often represented by the yield on government bonds.

Actual Return

The real gain or loss experienced on an investment over a specified period, typically expressed as a percentage.

Overpriced

Refers to an asset or service that is being sold for a price higher than its perceived or intrinsic value.

Portfolio Beta

An indicator of the fluctuation or inherent risk in a portfolio relative to the overall market.