The Fact That a Thermometer "Takes Its Own Temperature" Illustrates

question 59

Multiple Choice

The fact that a thermometer "takes its own temperature" illustrates

• A)thermal equilibrium.
• B)energy conservation.
• C)the difference between heat and internal energy.
• D)the fact that molecules are constantly moving.

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Definitions:

Sharpe Measure

A calculation used to understand the return of an investment compared to its risk, defined by the difference between the returns of the investment and the risk-free return, divided by the standard deviation of the investment returns.

Information Ratio

Ratio of alpha to the standard deviation of diversifiable risk.

Active Portfolio

A portfolio management strategy where an investment manager makes specific investments with the goal of outperforming an investment benchmark index.

Nonsystematic Variance

The portion of an investment's variance that is due to factors specific to the individual investment, rather than factors affecting the entire market.