Based on the Age of the Light- and Dark-Colored Regions

question 46

Multiple Choice

Based on the age of the light- and dark-colored regions of the Moon and the number of craters observed in these regions, we know that impacts in the inner Solar System

• A) rapidly decreased approximately 1 billion years ago.
• B) rapidly decreased approximately 3 billion years ago.
• C) were very rare in the last 4.6 billion years.
• D) occurred at approximately a constant rate throughout most of the age of the Solar System.
• E) never occur anymore.

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Definitions:

SML

The Security Market Line (SML) represents the relationship between the expected return of a market security and its risk, measured by beta, within the Capital Asset Pricing Model (CAPM).

Market Portfolio

A theoretical bundle of investments that includes every type of asset available in the market, with each asset weighted by its total market capitalization.

Capital Asset Pricing Model (CAPM)

Equation of the Security Market Line showing the relationship between expected return and beta.

Reward To Risk Ratio

A measure that evaluates the anticipated gains from an investment against the level of risk assumed to achieve these gains.