A Rainbow Results from

question 4

Multiple Choice

A rainbow results from

• A) both reflection and refraction.
• B) refraction only.
• C) neither reflection nor refraction.
• D) reflection only.

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Definitions:

Security Market Line

A graphical representation of the expected return of investments at different levels of risk as per the Capital Asset Pricing Model (CAPM).

Required Rates of Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put money into it, considering the risk.

Formulation

The process of devising or planning a strategy, policy, or system often based on specified principles or procedures.

Coefficient of Variation

A measure of relative variability that indicates the ratio of the standard deviation to the mean, commonly used to assess the risk per unit of return.