Isaac Newton Was Able to Estimate a Value for G

question 9

Essay

Isaac Newton was able to estimate a value for G, the universal gravitational constant, from the following data: the radius of the Earth is about 6 400 km, the average density of rocks is about 5.50 g/cm³, and g = 9.80 m/s² near the surface of the Earth. What value did Newton obtain for G?

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Definitions:

Short-Selling

The practice of selling securities or other financial instruments that are not currently owned, with the intention of repurchasing them at a lower price.

Writing Options

The act of creating an options contract to sell to another party, involving the obligation to buy or sell the underlying asset if the option is exercised.

Risk Lover

An individual or investor who prefers to take more risk in their investments for the possibility of higher returns.

Risk-Neutral

An attitude or assumption in financial theory where an investor doesn't require higher returns for taking on more risk.