Which of the Following Is True of Restrictive Covenants

question 86

Multiple Choice

Which of the following is true of restrictive covenants?

• A) They are widely used in subdivisions.
• B) Restrictive covenants are construed strictly against a party asserting their applicability.
• C) They may bind lot purchasers as though the restrictions had actually been asserted in their own deeds.
• D) All of these.

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Definitions:

Sharpe Measure

A method used to evaluate the risk-adjusted return of an investment, comparing the excess return (over a risk-free rate) to the standard deviation of returns.

S&P 500 Index

A stock market index in the United States composed of the market values of 500 major companies listed on either the New York Stock Exchange or NASDAQ.

Time-Weighted Return

A method of calculating investment returns that eliminates the impact of cash flows into and out of the portfolio, focusing solely on the performance of the investments themselves.

Information Ratio

A measure of portfolio returns beyond the returns of a benchmark, divided by the volatility of those returns.