Which of the Following Is a Legal Entity

question 19

Multiple Choice

Which of the following is a legal entity?

• A)company.
• B)partnership.
• C)sole proprietorship.
• D)all of the above.

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Definitions:

Risk-free Rate

The risk-free rate is the theoretical return on an investment with zero risk, often represented by the yield on short-term government securities.

CAPM

Capital Asset Pricing Model; a model that describes the relationship between systematic risk and expected return for assets.

Holding Period

The duration of time an investment is held before it is sold, impacting the capital gains tax implications.

Risk Aversion

A preference to minimize uncertainty and avoid risk in investment decisions.