If a Person Falls as Far as the Event Horizon

question 43

Multiple Choice

If a person falls as far as the event horizon of a black hole, what would happen to the person's heart rate, as perceived by a distant observer (apart from the effects caused by the person's adrenaline level) ?

• A) The heart rate would appear to have slowed down somewhat, but not much, because of the change of the speed of light in the gravity field.
• B) The heart rate would appear to be zero; his heart would appear to have stopped.
• C) The heart rate would appear to have speeded up to an incredible rate.
• D) The heart rate would appear to be normal since gravity has no effect on time intervals.

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Definitions:

Dividend Growth Model

A method of valuing a company's stock price by using predicted dividends and discounting them back to present value.

Cost of Equity

The return that investors expect for investing in a company's equity, often calculated using models like the Capital Asset Pricing Model (CAPM).

Market Risk Premium

Slope of the Security Market Line; the difference between the expected return on a market portfolio and the risk-free rate.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements and can finance its operations.