Which of the Following Is NOT a Component of Legal

question 31

Multiple Choice

Which of the following is NOT a component of legal astuteness as referenced in the text?

• A) A set of value-laden attitudes about the importance of law to the firm's success
• B) A practice of leaving the resolution of legal issues to outside counsel
• C) The ability to exercise informed judgment when managing the legal aspects of business
• D) Context-specific knowledge of the law and the appropriate use of legal tools

---

Definitions:

Multifactor Model

A financial model that evaluates securities by considering multiple economic and financial factors to explain market phenomena and/or rates of return.

Expected Return

The mean value of the probability distribution of possible returns from an investment or portfolio.

Expected Return-Beta Relationship

A concept in finance that describes the relationship between the risk of an investment and its expected return, based on the beta coefficient.

APT

The Arbitrage Pricing Theory, a model that determines the required return on an asset by considering various macroeconomic factors.