Which of the Following Is True as a Student Slides

question 39

Multiple Choice

Which of the following is true as a student slides down a water slide?

• A) kinetic energy decreases
• B) potential energy increases
• C) total energy increases
• D) none of the these

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Definitions:

Risk Premiums

Additional returns expected by an investor for taking on additional risk, over and above the risk-free rate of return.

Multifactor APT

Multifactor Arbitrage Pricing Theory, a model that describes the relationship between risk and expected return with multiple factors.

Beta

An indicator of the level of fluctuation, or inherent risk, of an asset or collection of assets relative to the overall market.

Zero-Investment Portfolio

A portfolio of zero net value, established by buying and shorting component securities, usually in the context of an arbitrage strategy.