Examlex

Solved

Kate Is Leasing Some Equipment from Ajax Leasing for a Period

question 14

Multiple Choice

Kate is leasing some equipment from Ajax Leasing for a period of one year. Ajax pays the maintenance, taxes, and insurance costs for this equipment. The life of the equipment is seven years. Which type of lease does Kate have?


Definitions:

Unsystematic Risk

The risk associated with a specific issuer of a security or investment, which can be mitigated through diversification.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single investment's performance.

Portfolio Theory

A framework for constructing a portfolio of assets in such a way that it optimizes the balance between risk and return.

Risk Aversion

The reluctance to take on investments with higher levels of uncertainty or potential for loss.

Related Questions