With a Simple Delivery Contract in Which the Seller Is

question 76

Multiple Choice

With a simple delivery contract in which the seller is a merchant, which party sustains a loss if, through no fault of either party, the goods are destroyed through fire prior to delivery?

• A) The seller
• B) The buyer
• C) Both the buyer and seller with the loss being proportioned 50% to the buyer and 50% to the seller
• D) Both the buyer and seller with the loss being proportioned 75% to the buyer and 25% to the seller
• E) Both the buyer and seller with the loss being proportioned 25% to the buyer and 75% to the seller

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Definitions:

Abnormal Returns

Abnormal returns refer to the profits generated from a security or portfolio that differ significantly from the expected market returns, based on risk and market performance.

Positive Abnormal Returns

Returns on an asset or portfolio that exceed the benchmark or expected return given its risk level.

Vanguard Index 500

A mutual fund that aims to mirror the performance of the S&P 500, managed by Vanguard.

Passive Investment

An investment strategy involving minimal buying and selling, aiming to benefit from long-term market returns with low fees.