While Moving to a New Apartment, Vance Discards a Sofa

question 65

Multiple Choice

While moving to a new apartment, Vance discards a sofa near the entrance to his old residence, with no intention of recovering it. The sofa is

• A)abandoned property.
• B)converted property.
• C)lost property.
• D)mislaid property.

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Definitions:

Optimal Weights

The proportion of each asset in a portfolio that maximizes its expected return for a given level of risk.

Expected Rate

Typically refers to the rate of return anticipated on an investment or project, based on projections or historical data.

Nominal Sharpe Ratio

A measure of risk-adjusted performance that indicates the average return minus the risk-free return divided by the standard deviation of return on an investment.

Nominal Return

The amount of profit or loss on an investment before adjusting for inflation.