The Prudent Investor Rule Requires

question 34

Multiple Choice

The prudent investor rule requires

• A) executives of companies to avoid investing in options of companies by which they are employed.
• B) executives of companies to disclose their transactions in stocks of companies by which they are employed.
• C) professional investors who manage money for others to avoid all risky investments.
• D) professional investors who manage money for others to constrain their investments to those that would have been approved by the prudent investor.

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Definitions:

Arrector Pili

Small muscles attached to hair follicles in mammals, contraction of which causes the hair to stand on end.

Blood Ph

The measure of acidity or alkalinity of the blood, which is tightly regulated around a value of 7.4.

Apocrine Sweat Glands

Specialized sweat glands that produce a thicker, milky secretion and are typically associated with hair follicles in underarm and genital areas.

Thermoregulation

The physiological process by which an organism regulates its internal temperature within a certain range, despite external changes.