What Happens When an Instrument Lists Two Payees but Is

question 84

Multiple Choice

What happens when an instrument lists two payees but is silent as to whether they are joint or alternative?

• A)The instrument is non-negotiable and may not be endorsed by either payee.
• B)Courts interpret the instrument as containing joint payees,and the endorsements of both listed payees are required to negotiate it.
• C)The instrument may be endorsed by one or the other payee,but may not be endorsed by both payees.
• D)Only the endorsement of the first listed payee is required to negotiate it.
• E)Courts interpret the instrument as containing alternative payees,and the endorsement of only one listed payee is required to negotiate it.

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Definitions:

Portfolio Beta

A measure of a portfolio's volatility or systemic risk compared to the overall market; a beta above 1 indicates higher than market volatility.

Risk-free Rate

The theoretical return on investment with no risk of financial loss, often represented by the yield of government bonds like U.S. Treasury bills.

Expected Market Rate

The anticipated rate of return that investors predict to receive from the market as a whole over a specific period.

Myopic Behavior

Short-sighted decision-making focusing on immediate benefits rather than considering long-term consequences, often seen in investment choices.