Which of the Following Is True of an Agent's Duty

question 3

Multiple Choice

Which of the following is true of an agent's duty to obey a principal's instructions?

• A) An agent may always substitute his or her personal judgment for that of the principal.
• B) An agent has no power to exercise his or her best judgment to further the interests of the principal, if no instruction is given.
• C) An agent will be liable for any loss to the principal caused by failure to follow instructions.
• D) An agent has a duty to ignore the principal's instructions if they seem unwise.

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Definitions:

Contract Multiplier

A factor used in options and futures contracts to determine the total value of the contract.

S&P 500 Contracts

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Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, often represented by the yield on government bonds.

Portfolio Expected Worth

The projected value of a portfolio, considering the potential returns of the investments within it over a specific timeframe.