Which of the Following Represents a Valid Regulation a Tier

question 40

Multiple Choice

Which of the following represents a valid Regulation A Tier 1 offering?

• A)selling $3 million of securities in any 12-month period with a $250,000 individual investor limit
• B)selling $10 million in securities in any 12-month period;investors can't buy more than 10% of their annual income or net worth
• C)selling $20 million of securities in any 12-month period with no individual investor limit
• D)selling $20 million in securities in any 12-month period;investors can't buy more than 5% of their annual income or net worth

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Definitions:

CAPM

Capital Asset Pricing Model, a formula used to determine the expected return on an investment based on its risk relative to the market.

APT Model

Arbitrage Pricing Theory Model; a financial theory that estimates the returns on assets based on their exposure to various risk factors.

One Factor

In finance, refers to models or analyses that consider only a single variable or risk factor in their calculations.

CAPM

The Capital Asset Pricing Model, a model that describes the relationship between systematic risk and expected return for assets, particularly stocks.