One Reason That Lawyers Might Prefer a Contingent Contract When

question 53

Multiple Choice

One reason that lawyers might prefer a contingent contract when representing a plaintiff in a tort case is that

• A) lawyers are risk neutral.
• B) diversification of many cases allows lawyers to reduce risk.
• C) lawyers are typically confident about winning every case.
• D) hourly rates for lawyers are usually very low.

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Definitions:

Outcome Yields

The results obtained from a particular action or set of circumstances, typically measured in terms of benefits, profits, or yields.

Investment Opportunity

A specific financial asset, product, or project that an individual, organization, or entity invests in with the expectation of generating a favorable future return.

Central Tendency

Statistical measures that describe the center or typical value of a dataset, including mean, median, and mode.

Expected Value

The weighted average of all possible outcomes of a random variable, with weights being their respective probabilities of occurrence.