Which of the Following Statements Is True of the Damages

question 39

Multiple Choice

Which of the following statements is true of the damages experts in litigation?

• A) An economic expert relies on the opinions of those who establish the facts of the damages claim, who in turn relies on the opinions of those who establish the parameters of the damages.
• B) The primary role of an economic expert in a damages claim is to establish the facts of the damages claim to define the nature and extent of the injury.
• C) The economic expert has to rely solely on his own technical knowledge and skills in determining the damages as other experts can be biased by personal interests.
• D) An economic expert is often the last witness to testify in a damages claim.

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Definitions:

Valuation

A systematic process to determine the price at which a security should sell in financial markets.

Designated Market Maker

A designated market maker is a market participant responsible for maintaining liquidity in a financial market by buying and selling securities.

Securities

Assets indicating equity in a publicly-traded company, a bond signifying indebtedness to a company or government, or options granting ownership rights.

Collateralized Debt Obligations

Collateralized debt obligations (CDOs) are complex financial instruments that pool together cash flow-generating assets and repackages this asset pool into discrete tranches that can be sold to investors.