NARRBEGIN: Diagram 09-01 Diagram 9-1

question 62

Multiple Choice

NARRBEGIN: Diagram 09-01
Diagram 9-1
Use the following HR diagram to answer the questions below: NARREND
-Which of the stars in Diagram 9-1 has the brightest absolute visual magnitude?

• A) Alnilam
• B) Antares
• C) Arcturus
• D) HR 5337
• E) Sirius B

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Definitions:

Financial Leverage

The use of borrowed funds to increase an investment's potential return, which also increases the risk of loss.

Operating Leverage

A measure of how sensitive a company's operating income is to changes in its revenue, indicating the proportion of fixed versus variable costs.

Financial Risk

The possibility of losing money on an investment or business venture due to various financial factors.

ROE

Return on Equity; a financial ratio indicating the profitability of a company by comparing net income to shareholders' equity.