A Pencil Partially Submerged in a Glass of Water Appears

question 65

Multiple Choice

A pencil partially submerged in a glass of water appears broken or offset because of

• A) polarization.
• B) diffraction.
• C) interference.
• D) refraction.

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Definitions:

Expected Return

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

Standard Deviation

A statistical measure of the dispersion of returns for a given security or market index, indicating how much returns can deviate from the average return.

Correlation

A statistical measure indicating the degree to which two variables' movements are associated with each other, ranging from -1 (perfect negative correlation) to 1 (perfect positive correlation).

Time Diversification

An investment strategy that spreads exposure across different periods to reduce risk associated with market volatility.