Which of the Following Statements Is True of a Situation

question 113

Multiple Choice

Which of the following statements is true of a situation in which a party to a contract substantially performs its obligations to the contract?

• A) The contract is said to be materially breached.
• B) The party will be entitled to full recovery under the contract.
• C) The contract immediately becomes void.
• D) The party may be entitled to a partial recovery under the contract.
• E) The party's performance is said to be as good as completed.

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Definitions:

Efficient Market Hypothesis

A theory stating that financial markets are “informationally efficient,” meaning prices fully reflect all available information.

Abnormal Returns

Abnormal returns refer to the profits generated from a security or portfolio that differ significantly from the expected market returns, based on risk and market performance.

Positive Abnormal Returns

Returns on an asset or portfolio that exceed the benchmark or expected return given its risk level.

Vanguard Index 500

A mutual fund that aims to mirror the performance of the S&P 500, managed by Vanguard.