A Kid Slides Down an Icy (Frictionless) Hill Starting from Rest

question 2

Multiple Choice

A kid slides down an icy (frictionless) hill starting from rest. At the top his gravitational potential energy is 500 J. He slides part way down the hill to a point where his gravitational potential energy is 200 J. His kinetic energy at that point will be

• A) 200 J.
• B) 300 J.
• C) some unknown value between 0 and 500 J.
• D) none of the above.

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Definitions:

Market Risk Premium

The extra return over the risk-free rate that investors demand for choosing to invest in the stock market over a risk-free asset.

Risk-Free Rate

A speculated return on an investment that is considered to have no risk of losing money, usually indicated by the performance of government securities.

Systematic Risk

A type of risk that is associated with the overall market or a particular market segment, often called market risk.

Expected Return

The average amount of profit or loss one can anticipate receiving on an investment, accounting for all possible outcomes.