The Differential Equation Is $\left( 1 - x ^ { 2 } \right) y ^ { \prime \prime } - 2 x y ^ { \prime } + 12 y = 0$

question 14

Multiple Choice

The differential equation is $\left( 1 - x ^ { 2 } \right) y ^ { \prime \prime } - 2 x y ^ { \prime } + 12 y = 0$ is

• A) Bessel's equation of order 12
• B) Bessel's equation of order 3
• C) Legendre's equation of order 12
• D) Legendre's equation of order 3
• E) Legendre's equation of order 4

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Definitions:

Required Rate of Return

The required rate of return is the minimum expected return an investor demands for holding a risky investment, compensating for the risk taken.

Beta

A measure of a stock's volatility in relation to the overall market, used in the capital asset pricing model to determine expected returns.

Market Risk Premium

The extra earnings an investor foresees from holding a risky market portfolio in comparison to risk-free assets.

Risk-Free Rate

The theoretical return on investment with no risk of financial loss, typically represented by the yield on government bonds like U.S. Treasury securities.