All of the Following Changes in Ocean Conditions Are Expected

question 5

Multiple Choice

All of the following changes in ocean conditions are expected to occur if current trends in climate change continue EXCEPT:

• A) increase in anoxic zones (i.e. dead zones).
• B) decrease in the pH of seawater.
• C) increase in sea surface temperatures.
• D) decrease in the intensity of El Nino events.

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Definitions:

Capital Asset Pricing Model

The Capital Asset Pricing Model (CAPM) is a theoretical framework used to determine the expected return on an investment, factoring in risk and the time value of money.

Security Market Line

The Security Market Line (SML) is a graphical representation in financial markets that depicts the expected rate of return of an investment as a function of its systematic, or market, risk, as measured by beta.

Capital Market Line

A line used in the Capital Asset Pricing Model to illustrate the rates of return for efficient portfolios depending on the level of risk free rate and the level of market risk.

Market Portfolio

A theoretical portfolio that includes all assets in the market, with each asset weighted according to its market capitalization.