A Lens That Is Thicker at the Center Than at the Edge

question 14

Multiple Choice

A lens that is thicker at the center than at the edge is

• A) a diverging lens only.
• B) a convex lens only.
• C) a converging lens only.
• D) both a convex lens and a converging lens.

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Definitions:

Time-Weighted Return

A method of calculating investment returns that eliminates the impact of cash flows into and out of the portfolio, focusing solely on the performance of the investments themselves.

Information Ratio

A measure of portfolio returns beyond the returns of a benchmark, divided by the volatility of those returns.

Residual Standard Deviation

A measure of the amount by which an observed value differs from the value predicted by a model, indicating the precision of the model.

Geometric Average Return

A method to calculate the average rate of return per period on an investment, compounded over multiple periods.