A Person Who Normally Weighs 700 N Is Riding in a Rather

question 124

Multiple Choice

A person who normally weighs 700 N is riding in a rather swift elevator that is moving at a constant speed of 9.8 m/s. If this person is standing on a bathroom scale inside the elevator, what
Would the scale read?

• A) 700 N
• B) more than 700 N
• C) less than 700 N
• D) It could be more or less than 700 N, depending on whether the elevator is going up or down.

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Definitions:

Macroeconomic Risks

Considered broad economic or political uncertainties that could affect the performance of financial markets and investments globally.

Security Selection

The process of choosing individual securities for investment with the goal of achieving the best possible return for a given level of risk.

Passive Strategy

A portfolio decision that avoids any direct or indirect security analysis. See passive management.

Index Funds

Investment funds designed to replicate and track the components of a market index.