Consider Two Mercury Barometers,one with Twice the Cross-Section Area of the Other.Mercury

question 62

Multiple Choice

Consider two mercury barometers,one with twice the cross-section area of the other.Mercury in the wider tube will rise

• A)to the same height as in the narrow tube.
• B)twice as high as mercury in the narrow tube.
• C)four times as high as mercury in the narrow tube.
• D)more than four times as high as in the narrow tube.
• E)none of the above

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Definitions:

Reward to Risk Ratio

A metric utilized by investors for comparing the anticipated gains from an investment against the risk incurred to attain those gains.

Beta

An indicator of the level of systematic risk or volatility of a security or a portfolio relative to the entire market.

Total Risk

The complete range of risks associated with an investment, including both systematic risk (market related) and unsystematic risk (company or industry specific).

Standard Deviation

A measure of the dispersion or variability of a set of data points from its mean, often used in finance to gauge investment risk.