What Does It Mean When We Say That Absorbance Is

question 22

Multiple Choice

What does it mean when we say that absorbance is quantized?

• A) Within a system, energy increases or decreases in a continuous smooth curve
• B) There are discrete energy levels within a given system
• C) The energy is quantitated and well understood
• D) Energy can only be reflected if it is below a specific quantity
• E) none of the above

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Definitions:

Nonsystematic Standard Deviation

A measure of variance in a portfolio's total returns attributable to factors specific to individual securities, as opposed to the market.

Equally-Weighted Portfolio

An equally-weighted portfolio is an investment strategy that gives the same weight, or importance, to each asset in the portfolio, regardless of the size or market value of the companies.

Securities

Securities that signify either an equity stake in a corporation that is publicly traded, a debt interest in a company or government entity, or ownership rights as delineated by an option.

HML Beta

A measure used in finance to assess the sensitivity of an asset or portfolio to a value factor, defined as high minus low book-to-market stocks.