Jack Is a Guest at Harry's Home

question 3

Multiple Choice

Jack is a guest at Harry's home.While there, he goes into the library and picks up a music box that is part of Harry's collection.Jack overwinds the stem and it breaks.Hoping Harry won't notice, Jack takes the music box for repair to a jeweler who sells similar ones.The jeweler fixes it, but forgets to tag it and an unsuspecting clerk sells it to Robert.Jack is frantic.Can Harry get the music box from Robert?

• A) Yes, Robert was not a buyer in the ordinary course of business.
• B) No, the jeweler gives good title to a bona fide purchaser for value.
• C) No, the jeweler was not a merchant with regard to music boxes.
• D) Yes, Robert has assumed only Jack's title, which is no title at all.

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Definitions:

High Water Mark

The previous value of a portfolio that must be reattained before a hedge fund can charge incentive fees.

Incentive Fees

Fees paid to a fund manager based on the performance of the fund, designed to align the interests of the manager with those of the investors.

Portfolio Value

The total worth of all the financial assets held in an investment portfolio.

Statistical Arbitrage

A strategy that uses statistical and computational techniques to exploit inefficiencies or price differences in financial markets, often involving complex models and high-frequency trading.