The Concept of Conflict of Interest as It Relates to the Law

question 52

Multiple Choice

The concept of conflict of interest as it relates to the law of agency includes which of the following?

• A) An agent may take a position that conflicts with the principal only if the principal, with full knowledge of all the facts, consents.
• B) An agent may not represent her principal in a transaction in which the agent has a personal interest.
• C) An agent may not act on behalf of adverse parties to a transaction without both principals' approval of the dual agency.
• D) All of these.

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Definitions:

Performance Measurement

The process of evaluating how effectively an investment or portfolio has performed, often compared to a benchmark.

Portfolio Risk

The uncertainty or potential for financial loss in an investment portfolio due to market volatility.

Constant

A fixed value that does not change in a particular context or mathematical equation.

M-Squared Measure

A performance metric that measures the return of a portfolio, adjusted for risk, compared to a benchmark.