Use the Figure Shown Below to Complete the Following Statement

question 96

Multiple Choice

Use the figure shown below to complete the following statement: As a protostar contracts,

• A) the luminosity decreases.
• B) the luminosity increases.
• C) the temperature increases.
• D) the temperature decreases.
• E) either the luminosity decreases or the temperature increases.

Recognize the expected return of a portfolio of risky securities and how it is calculated.

Understand the Capital Allocation Line (CAL) and its significance.

Differentiate among different types of risks (market risk, unique risk, firm-specific risk, diversifiable risk).

Be familiar with Markowitz portfolio theory and the concept of optimal risky portfolio.

---

Definitions:

Capital Gain

The profit from selling a capital asset for more than its purchase price.

Dividends

Payments made by a corporation to its shareholders from the earnings of the company, usually in the form of cash or stocks.

Shares

Holdings in a corporation or financial asset, these units confer rights to an equitable distribution of dividends from declared profits.