Basalt and Gabbro Are Compositional Equivalents, Which Means That They

question 26

Short Answer

Basalt and gabbro are compositional equivalents, which means that they are made up of the same ____________________ but have different ____________________.

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Definitions:

Stocks

Shares of ownership in a company that represent a claim on the company's earnings and assets.

Probability

The measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.

Risk Premium

Higher expected rates of return that compensate investors in risky assets. In equilibrium, differences in the rate of return reflect differences in the riskiness of an investment.

Low Risk Asset

An investment that is generally expected to yield returns with relatively lower volatility or risk of loss.