Find the Power Function That the Graph of F Resembles $| \mathbf { x } |$

question 253

Multiple Choice

Find the power function that the graph of f resembles for large values of $| \mathbf { x } |$
- $$f ( x ) = 3 x - x ^ { 3 }$$

• A) \(y = x ^ { 2 }\)
• B) \(y = x ^ { 4 }\)
• C) \(y = x ^ { 3 }\)
• D) \(y = - x ^ { 3 }\)

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Definitions:

Beta

A measure of the volatility, or systemic risk, of a security or a portfolio in comparison to the market as a whole; it indicates the tendency of a security's returns to respond to swings in the market.

CAPM (Capital Asset Pricing Model)

A model used to determine the expected return on an investment based on its level of risk, as well as the risk-free rate of return and the expected market return.

Risk Premium

The extra return expected by an investor for holding a risky asset compared to a risk-free asset, as compensation for the higher risk.

Diversifiable Risk

A type of risk that can be reduced or eliminated from a portfolio by holding a variety of investments.