Wen Purchased an Automobile from Nick for $10,000

question 41

True/False

Wen purchased an automobile from Nick for $10,000. Unknown to Wen, Nick had used the automobile as security for a loan from his bank, and the bank had registered its security interest in the automobile under the provincial personal property security registration legislation. A few months after the sale, Nick defaulted on the loan, and the bank discovered that Wen was in possession of the automobile. The bank only has recourse against Nick for the amount owing.

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Definitions:

Standard Deviation

A measure of the dispersion of returns for a given security or market index, indicating the degree of volatility.

Passive Investment Strategies

Investment strategies that involve minimal buying and selling, often mirroring an index.

Active Trading Strategies

Investment strategies that involve frequent transactions, aiming to exploit short-term price movements to achieve profit.

CAL

Stands for Capital Allocation Line, which represents the risk-reward profile of various portfolios, showing the possible rates of return for a given level of risk.