A Rectangle Is Bounded by the X- and Y-Axes and the Graph

question 107

Multiple Choice

A rectangle is bounded by the x- and y-axes and the graph of (see figure) . What length and width should the rectangle have so that its area is a maximum?

---

Definitions:

Dow Average

A stock market index that represents the stock performance of 30 large, publicly-owned companies based in the United States.

Four-Factor Model

An investment model that extends the three-factor model by adding momentum as a factor to account for stock performance.

Excess Returns

The return on an investment beyond the return expected from the risk level, often compared to benchmarks or risk-free returns.

Fama and French

A model developed by Eugene Fama and Kenneth French that expands on the Capital Asset Pricing Model (CAPM) by adding size risk and value risk factors to the market risk factor.