Examlex

Solved

Your Friend Ricky Took a Finance Class and Learned About

question 21

Essay

Your friend Ricky took a finance class and learned about the risk-return trade-off.Wanting a high return,Ricky invested in a risky,start-up technology company.A year later the company went bankrupt and Ricky lost his entire investment.Ricky is furious with his finance professor for misleading him,claiming he was taught that higher return goes with higher risk.Explain how Ricky misinterpreted the risk-return trade-off.


Definitions:

Criminal Liability

The legal responsibility a person or entity has for committing an act that is considered a crime by law.

Employer

An individual or organization that hires and pays people to perform work or provide services.

Third Restatement

A reference in U.S. legal doctrine, particularly in the context of tort law, to the latest revision of a comprehensive guide on legal principles.

Principal Incapacitated

Principal incapacitated refers to a situation where the principal party in a legal or financial agreement is unable to make decisions or fulfill their role, due to physical or mental incapacity.

Related Questions