An Instructor Is Discussing Key Material for a Course When

question 301

Multiple Choice

An instructor is discussing key material for a course when a learner asks a question that will lead to material that the class is not yet prepared for. Which of the following is the BEST course of action for the instructor?

• A) Inform the learner that the question can be asked during a break
• B) Answer the question as not doing so may cause the learner to be confused.
• C) Defer the question and assure the learner that it will be covered later in the course.
• D) Inform the learner that the question falls outside of scope and will not be answered.

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Definitions:

Fairly Priced

A term indicating that an asset's selling price is considered to be in line with its intrinsic value.

Homogeneous Expectations

An assumption in finance that all investors have the same expectations regarding the future rates of return, volatilities, and correlations of securities.

Economic View

A perspective or analysis based on economic indicators, trends, and policies to understand or predict economic outcomes.

CAPM

The Capital Asset Pricing Model, a theory that describes the relationship between the risk of an investment and its expected return.