Ellis Turns Around and Around in a Circle

question 18

Multiple Choice

Ellis turns around and around in a circle.When he stops,he feels like his head is still spinning.What is responsible for this sensation?

• A)semicircular canals
• B)proprioceptors
• C)otolith organs
• D)otolith crystals

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Definitions:

Cost of Capital

The required return necessary to make a capital budgeting project, such as building a new factory, worthwhile.

Beta Coefficient

Amount of systematic risk present in a particular risky asset relative to an average risky asset.

Capital Gains Yield

The price appreciation component of a stock's total return, calculated as the increase in the stock price divided by its initial price.

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows from a particular project equal to zero.