A Lighthouse Is Located on a Small Island $3 \mathrm {~km}$

question 1

Multiple Choice

A lighthouse is located on a small island, $3 \mathrm {~km}$ away from the nearest point $P$ on a straight shoreline, and its light makes four revolutions per minute. How fast is the beam of light moving along the shoreline when it is $1 \mathrm {~km}$ from $P$ ?

• A) \(1900 \pi \mathrm { km } / \mathrm { h }\)
• B) \(2000 \pi \mathrm { km } / \mathrm { h }\)
• C) \(1800 \pi \mathrm { km } / \mathrm { h }\)
• D) \(1700 \pi \mathrm { km } / \mathrm { h }\)
• E) \(1600 \pi \mathrm { km } / \mathrm { h }\)

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Definitions:

Efficient Frontier

A concept in modern portfolio theory representing a set of optimal investment portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

Capital Asset Pricing Model

A model that describes the relationship between systemic risk and expected return for assets, particularly stocks, used to calculate a theoretically appropriate required rate of return for an asset, given its non-diversifiable risk.

Expected Rate

The anticipated return on an investment based on historical averages, interest rates, or economic indicators.

Illiquidity Premiums

Additional return expected by investors for holding assets that are difficult to trade quickly without significant price concessions.