To Be Successful in a Civil Action Under Section 11

question 52

Multiple Choice

To be successful in a civil action under section 11 of the Securities Act of 1933 against auditors for liability for a materially misstated registration statement,the plaintiff must prove the

• A)Auditors' intent to deceive: Yes; Plaintiff's reliance on the registration statement: Yes
• B)Auditors' intent to deceive: Yes; Plaintiff's reliance on the registration statement: No
• C)Auditors' intent to deceive: No; Plaintiff's reliance on the registration statement: Yes
• D)Auditors' intent to deceive: No; Plaintiff's reliance on the registration statement: No

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Definitions:

Normal Model

A probability distribution that is symmetrical about its average, indicating that occurrences close to the mean are more common than those further away.

Central 68%

Central 68% is a statistical term that refers to the percentage of data within one standard deviation of the mean in a normal distribution, implying that about 68% of the data fall within this range.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how much the values differ from the mean.

IQR

Interquartile Range, a measure of variability, indicates the range within which the middle 50% of a data set lies.