Becoming a Sophisticated Client Will

question 8

Multiple Choice

Becoming a sophisticated client will

• A) ensure that a business person never needs a lawyer.
• B) help a business person manage her legal affairs more efficiently and effectively.
• C) result in a business person developing a bias against lawyers.
• D) relieve a business person from having to conduct legal research.
• E) protect a business person from needing legal advice.

---

Definitions:

Risky Securities

Financial instruments carrying a higher potential for loss, often offering greater potential returns to compensate for the increased risk.

Portfolio Variance

A measure of the dispersion of returns of a portfolio, calculated as the weighted average of the covariance of each asset in the portfolio.

Coefficient of Correlation

A statistical measure that indicates the degree to which two variables move in relation to each other, ranging from -1 to 1.