An Agent Will Not Be Authorized to Act for a Principal

question 6

True/False

An agent will not be authorized to act for a principal unless he receives some consideration for the task.

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Definitions:

Efficient Market Hypothesis

The theory that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns than the overall market.

Stock Market

A public marketplace for buying, selling, and issuing shares of publicly held companies; facilitates economic transactions and information exchange regarding stock prices and company performance.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, widely used in finance to assess the volatility of an investment.

Volatility

Volatility refers to the degree of variation of a trading price series over time, typically measured by the standard deviation of returns.