Apparent Authority Arises When

question 244

Multiple Choice

Apparent authority arises when:

• A) the principal creates an appearance of authority in an agent that leads a third party to conclude reasonably that the agent has authority to act for the principal
• B) the agent creates an appearance of authority in a principal that leads a third party to conclude reasonably that the agent has authority to act for the principal
• C) the agent forges documents conferring authority on himself
• D) the principal gives the agent implied authority
• E) none of the other choices are correct

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Definitions:

Beta

Beta is a measure of a stock's volatility in relation to the overall market, indicating the level of risk associated with the stock’s price changes.

Portfolio

A compilation of investment vehicles including equities, fixed income securities, natural resources, currency, and cash equivalents, as well as closed-end funds and exchange traded funds (ETFs).

Standard Deviation

A statistical measure that quantifies the dispersion or variability of a set of data points or investment returns from their mean.

Returns

The profit or loss on an investment over a specified period of time, often expressed as a percentage of the investment's initial cost.