A Rescue Plane Flying Horizontally at Spots a Survivor

question 1

Multiple Choice

A rescue plane flying horizontally at spots a survivor in the ocean directly below and releases an emergency kit with a parachute. . Because of the shape of the parachute, it experiences insignificant horizontal air resistance. If the kit descends with a constant vertical acceleration of how far away from the survivor will it hit the waves?

• A) 574 m
• B) 4.54 km
• C) 406 m
• D) 602 m

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Definitions:

Passive Investment

An investment strategy involving minimal buying and selling, aiming to benefit from long-term market returns with low fees.

Four-factor Model

A financial model that expands the three-factor model (market risk, size risk, and value risk) by adding a momentum factor to explain stock returns.

Fama and French Factors

Fama and French factors are three factors—market risk, size risk, and value risk—used in explaining portfolio returns beyond the market risk measured by beta.

Semistrong-form

A theory suggesting that stock prices incorporate all publicly available information, including historical data and public news.