Examlex
One of the dangers of tornados and hurricanes is the rapid drop in air pressure that is associated with such storms.Assume that the air pressure inside of a sealed house is 1.02 atm when a hurricane hits.The hurricane rapidly decreases the external air pressure to 0.910 atm.A square window in an outside wall of the house measures 2.02 m on each side.What net force (directed outwards) is exerted on this window? (1 atm = 1.01 × 105 Pa.)
CAPM
The Capital Asset Pricing Model, a formula used to determine the theoretical expected return of an investment given its risk relative to the market.
Risk-free Asset
An investment with zero risk of financial loss, typically considered to be government bonds.
Systematic Risk
Systematic risk refers to the risk inherent to the entire market or market segment, which cannot be mitigated through diversification.
CAPM
A financial theory that calculates the expected return on an investment based on its risk relative to the market as a whole.
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