The Geothermal Gradient Describes How

question 25

Multiple Choice

The geothermal gradient describes how:

• A) pressure increases with depth within the Earth.
• B) temperature increases with depth within the Earth.
• C) water content increases with depth within the Earth.
• D) magma becomes more mafic with depth within the Earth.

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Definitions:

Total Abnormal Return

The sum of the differences between the expected return on a security, based on a model like the CAPM, and the actual return over a specific period.

Bogey Portfolio

A benchmark portfolio against which the performance of an investment portfolio can be measured.

Bonds

Financial instruments representing loans made by an investor to a borrower, typically corporate or governmental, which are expected to be paid back with interest.

Sharpe Measure

An indicator of the performance of an investment compared to a risk-free asset, adjusted for its risk, calculated as the difference in returns divided by the standard deviation of the investment.