An Idaho Resident Bought a Large Quantity of Jeans Over

question 2

Multiple Choice

An Idaho resident bought a large quantity of jeans over the Internet from a Maine company. When a dispute over the quality of the product arose, the Idaho resident sued the Maine company in Idaho state court. When the Maine company protested, the supreme court of Idaho, in Blimka v. My Web Wholesalers, held that the buyer:

• A) could sue in state court in Idaho or in Maine
• B) could sue in state court in Idaho
• C) could sue in state court in Maine
• D) could sue in either federal or state court in Maine
• E) none of the other choices are correct

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Definitions:

Roll's Critique

A theoretical argument suggesting that it is impossible to create a truly diversified market portfolio due to the vast number of assets in existence.

CAPM

Capital Asset Pricing Model, a formula used to determine the expected return on an investment based on its risk relative to the overall market.

True Market Portfolio

A theoretical bundle of all possible investments that are weighted by market value.

Stock's Alpha

Stock's Alpha measures a stock's performance relative to a benchmark index, indicating its value added or lost against the market average.