Which of the Following Statements About Public Police Officers Who

question 91

Multiple Choice

Which of the following statements about public police officers who work for private security firms is true?

• A) Congress passed a law making it illegal for public police officers to work for private firms.
• B) It is legal for public police officers to work for private firms, but they never retain their full powers and status as police personnel.
• C) It is almost always legal for public police officers to work for private firms, and they may retain their powers and status as police personnel.
• D) Very few police officers work for private firms.
• E) There is no conflict of interest if a public police officer works for a private firm.

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Definitions:

Expected Return

The anticipated or forecasted return on an investment based on historical or projected performance data.

Systematic Risk

The risk inherent to the entire market or market segment, also known as non-diversifiable risk or market risk.

Market Risk Premium

The higher return an investor foresees from investing in a market portfolio with associated risks as opposed to choosing completely safe assets.

Risky Asset

An asset that carries a higher degree of risk of loss, but also offers a higher potential return.