Wobbles in the Path of Uranus Led to the Discovery

question 65

Multiple Choice

Wobbles in the path of Uranus led to the discovery of

• A)Jupiter.
• B)Mars.
• C)Neptune.
• D)all of the above
• E)none of the above

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Definitions:

Expected Return

The anticipated return on an investment, factoring in the probability of various outcomes.

Security Market Line

A line that represents the relationship between the risk of investing in a security and its expected return, as per the Capital Asset Pricing Model.

Market Risk Premium

The extra yield an investor anticipates when they invest in a volatile market portfolio as opposed to assets that are free from risk.

Expected Return

The weighted average of all possible returns for an investment, with the weights being the probabilities of each outcome.