Which of the Following Statements Is True Regarding a Secured

question 42

Multiple Choice

Which of the following statements is true regarding a secured creditor's disposition of the collateral after the debtor's default?

• A)The debtor cannot redeem the collateral after his default.
• B)The collateral must be disposed of by private sale.
• C)The creditor may opt not to repossess the collateral and instead sue the debtor on his underlying obligation.
• D)If the proceeds realized from the sale of the collateral exceed the various expenses that must be satisfied from those proceeds,the surplus goes to the creditor.

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Definitions:

Required Return

The minimum expected yield by investors for providing capital to a company or project.

Betas

A measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole, often used in the Capital Asset Pricing Model.

Standard Deviation

A statistical measure of variance or dispersion in a set of values, commonly used to assess investment risk.

Expected Return

The anticipated amount of profit or loss an investment is projected to yield based on historical or estimated future performance.