Newton's First Law of Motion States That, Unless Acted on by an External

question 19

Multiple Choice

Newton's first law of motion states that, unless acted on by an external force, an object at rest

• A) will stay at rest
• B) will move very slowly
• C) will accelerate very quickly
• D) none of these

---

Definitions:

Expected Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling, as anticipated by consumers, businesses, and investors.

Required Return

The minimum rate of return on an investment that investors expect to compensate them for the level of risk.

Beta

A measure of a stock's volatility relative to the overall market, indicating its risk compared to the market average.

Risk-free Rate

The return on investment with no risk of financial loss, often represented by the yield on government securities.