Suppose the People Standing at Rest with Respect to the Earth

question 2

Multiple Choice

Suppose the people standing at rest with respect to the Earth on the Earth's equator are weightless.The radius of the earth is 6.37 * 10⁶ m.The length of the day under this condition would be

• A)21 hours.
• B)6 hours.
• C)2.1 hours.
• D)84.4 min.
• E)41.5 min.

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Definitions:

Unique Risk

Another term for diversifiable risk, emphasizing the idea that this risk is specific to an individual investment and not the market as a whole.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.

Capital Allocation Line

A line on a graph that shows the rates of return of portfolios that optimally combine risk and return for an investor.

Risk-averse Investors

Individuals who prefer lower returns with known risks rather than higher returns with unknown risks.