Brad Started a Pest Control Business

question 29

Multiple Choice

Brad started a pest control business.To protect his personal assets against liability arising out of the business,Brad incorporated the business.Brad's use of the corporate form of organization to shield against personal liability claims illustrates

• A)fundamental risk.
• B)noninsurance transfer.
• C)risk retention.
• D)objective risk.

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Definitions:

Correlation Coefficient

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

Covariance

A statistical measure of the directional relationship between the returns of two assets.

Expected Return

The mean of all potential outcomes for an investment, adjusted based on the probability of each scenario occurring.

Standard Deviation

A metric assessing how much a group of data points or investment yields spread out or differ from each other.