In Order to Constitute a Valid Gift

question 17

Multiple Choice

In order to constitute a valid gift:

• A) the donor must intend to transfer ownership of property immediately.
• B) the donee must accept the gift.
• C) the donor must deliver the gift property to the donee.
• D) All of the above are necessary for a valid gift.

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Definitions:

Capital Allocation Line

A line on a graph that represents the risk-return trade-off of investments, showing the rates of return for efficient portfolios depending on the risk-free rate and the market risk.

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points from their mean, used in finance to gauge the volatility of investment returns.

Expected Rate

The anticipated return on an investment, taking into account various factors like market trends, risk level, and past performance.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables.