In the Early History of Earth, the Solid Surface of the Earth

question 102

Multiple Choice

In the early history of Earth, the solid surface of the earth weathered more rapidly than now because ______ .

• A) there was little topography so shallow water washed across the surface often
• B) the rocks at the surface were weak because there was little oxygen available
• C) the early rain was very acidic
• D) there were numerous earthquakes and volcanoes breaking up the surface
• E) the atmosphere contained large amounts of corrosive methane

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Definitions:

Systematic Risk

Refers to the risk inherent to the entire market or market segment, which cannot be mitigated through diversification.

Diversification

The process of allocating investments across various financial assets to reduce the risk exposure of a portfolio.

One-Factor APT

The Arbitrage Pricing Theory that describes the expected return of a financial asset in relation to a single systematic risk factor.

Factor Portfolio

An investment portfolio constructed to have a high sensitivity to certain risk factors, aiming to achieve specific investment outcomes.