Which of the Following Observations Would Support the Solar Nebula

question 39

Multiple Choice

Which of the following observations would support the solar nebula theory over the passing star hypothesis?

• A) proving that most of the solar like stars near the sun also have planets orbiting them.
• B) proving that none of the stars near the sun has planets orbiting them
• C) finding a planet located beyond the orbit of Pluto
• D) finding a meteorite whose age proved to be greater than 4.6 billion years
• E) proving that Mercury has the same uncompressed density as Earth

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Definitions:

Zero Coupon Bond

A type of bond that does not pay periodic interest payments and is instead issued at a discount to its face value, which is the amount paid to the holder at maturity.

Risk-Free Rate

The expected return on an investment that carries no risk, commonly exemplified by the interest rate on government bonds.

Call Option

An option contract that grants the holder the right to buy an underlying asset at a predetermined price before the option expires, without the obligation to do so.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company based on fundamental analysis without regard to its market value.