As a Self- Contained Planet, Earth Is Divided into Several

question 39

Multiple Choice

As a self- contained planet, Earth is divided into several interacting systems called ________.

• A) the atmosphere, hydrosphere, geosphere, and biosphere
• B) the geosphere, atmosphere, cryosphere, and gaiasphere
• C) the solid earth, the liquid earth, the gaseous earth and the living planet
• D) the aerosphere, aquasphere, terrasphere, and ecosphere

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.

Risk Premium

The additional return an investor requires to invest in a risky asset compared to a risk-free asset, compensating for the higher risk.

Arbitrage

The practice of profiting from price differences of the same asset in different markets, exploiting inefficiencies without market risk by simultaneously buying and selling.

Expected Rate of Return

The mean amount of profit or loss one can expect from an investment, accounting for all possible outcomes.