Leonardo Contracts to Install Automatic Watering Troughs in Kendall's Dairy

question 62

Multiple Choice

Leonardo contracts to install automatic watering troughs in Kendall's dairy barn.Leonardo then becomes seriously ill and contracts with Jake to install the troughs.Jake is unreliable and never shows up to install the troughs.Kendall can sue

• A)no one.
• B)Jake only.
• C)Leonardo only.
• D)Jake or Leonardo.

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Definitions:

Long-short Equity Fund

A type of investment fund that takes both long and short positions in stocks, aiming to profit from increases in the prices of some stocks and decreases in the prices of others.

Risk-free Rate

The theoretical rate of return on an investment with zero risk, typically represented by U.S. Treasury securities.

Modified Duration

A measure of a bond's price sensitivity to changes in interest rates, taking into account the bond's yield, coupon, and time to maturity.

Hedge Ratio

A ratio used to measure the amount of exposure reduced by hedging, typically in the context of derivatives and risk management.