Most L/Cs Issued in Connection with Global Trade Transactions Are

question 27

Multiple Choice

Most L/Cs issued in connection with global trade transactions are

• A)documentary
• B)clean
• C)revocable
• D)created by a combination of a buyer and a seller alone

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Definitions:

Expected Return

The weighted average of all possible returns for an investment, where each outcome is weighted by its likelihood of occurrence.

Standard Deviation

A measure of the dispersion or variability of a set of data points from their mean; used in finance to gauge the volatility of an investment.

Market Risk Premium

The market risk premium is the additional return an investor expects to receive from holding a risky market portfolio instead of risk-free assets.

Portfolio AB

A diversified collection of investments of varying types held by an individual or institution.