The Part of a Share's Return That Is Systematic Is

question 15

Multiple Choice

The part of a share's return that is systematic is a function of which of the following variables?
I. Volatility in excess returns of the share market
II. The sensitivity of the share's returns to changes in the share market
III. The variance in the share's returns that is unrelated to the overall share market

• A)I only
• B)I and II only
• C)II and III only
• D)I, II and III

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Definitions:

Promissory Estoppel

A legal principle preventing a party from retracting a promise when the other party has reasonably relied on that promise and acted upon it, leading to a detriment.

Reasonable Reliance

Relying on a statement or action in a manner that a reasonable person would consider justified under the circumstances.

UCC

The United States has implemented the Uniform Commercial Code, a wide set of legal principles, to govern commercial exchanges.

Consideration

In contract law, something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.