Kim Goes to Tanya's House to Tune Her Guitar for a Reasonable

question 25

Multiple Choice

Kim goes to Tanya's house to tune her guitar for a reasonable fee.Tanya does not pay.Does Kim have a possessory lien on the guitar?

• A)Yes,because Kim provided a service to Tanya which Tanya did not pay for.
• B)Only if Kim and Tanya entered into a contract where the guitar acted as collateral.
• C)No,because Kim is not an artisan or an innkeeper.
• D)No,because Kim was not in possession of the guitar.

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Definitions:

Capital Allocation Line

A line on a graph that shows the risk-reward ratio of different portfolios, helping investors understand their options for achieving a desired balance.

Risk-averse Investors

Investors who prefer to minimize uncertainty and potential loss in their investment choices, often opting for safer, more predictable investments.

Optimal Risky Portfolio

The combination of investments that provides the highest expected return for a given level of risk or the lowest risk for a given level of expected return.

Expected Utility

A theory in economics that assesses the utility or satisfaction an agent expects to receive from different outcomes, taking into account their risk preferences.