A Person's Written Declaration of How He or She Wishes

question 23

Multiple Choice

A person's written declaration of how he or she wishes property to be distributed upon his or her death is known as a:

• A) gift.
• B) will.
• C) sale.
• D) lease.

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Definitions:

Unsystematic Risk

The portion of total risk that is specific to a single investment or to a small group of investments, also known as idiosyncratic or specific risk, which can be mitigated through diversification.

Bankruptcy

A legal process in which individuals or businesses unable to meet their financial obligations seek relief from some or all of their debts.

Par-Value Bond

A bond that is issued and redeemed at its face value, which is the amount paid to the bondholder at maturity.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity.