​ Which of the Following Is True of a Contract

question 15

Multiple Choice

​ Which of the following is true of a contract between two minors?

• A)Only the person of a lower age has the right to avoid the contract.
• B)Each minor has the right to avoid the contract.
• C)Each minor is bound by the contract
• D)Each minor is bound until he or she reaches the age of majority.

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Definitions:

Capital Asset Pricing Model

A framework that explains the connection between inherent risk and anticipated return on investments, especially in the context of equities.

Beta

A measure of a stock's volatility in relation to the overall market, indicating how much the stock price is expected to fluctuate.

Arbitrage Pricing Theory

A financial model that determines the theoretical return of an asset by considering multiple macro-economic factors or theoretical market indices.

Systematic Risk Factors

External risks that affect an entire market or asset class, and cannot be mitigated through diversification.