Macro Events Only Are Reflected in the Performance of the Market

question 90

Multiple Choice

Macro events only are reflected in the performance of the market portfolio because:

• A)The market portfolio has no individual firms
• B)Only macro events are tracked by economists
• C)Unique risks have been diversified away
• D)Firm-specific events would be too numerous to list

Recognize when a quotation or advertisement constitutes an offer.

Explain the conditions under which an offeror can or cannot revoke an offer.

Understand the effects of external factors (e.g., death, insanity, legality changes) on the validity of an offer.

Compare modern and classical contract law in terms of specificity and flexibility.

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Definitions:

Partnership Dissolves

The process by which the association between individuals or entities conducting a business jointly is formally ended.

Limited Liability Partnership

A partnership in which some or all partners have limited liabilities, protecting them from certain legal actions and financial responsibilities.

Personal Liability

The responsibility of an individual to settle debts or legal obligations from their own assets, rather than the protection offered by operating within a corporation or limited liability entity.

Malpractice

Professional misconduct or the failure to exercise the requisite degree of skill as a professional. Negligence—the failure to exercise due care—on the part of a professional, such as a physician or an attorney, is commonly referred to as malpractice.