The Exposed Bedrock in the Background of the Figure Below

question 64

Multiple Choice

The exposed bedrock in the background of the figure below, to the right, formed as

• A)isostatic rebound caused the land to extend upward.
• B)particularly resistant rock and/or thin ice left the rock above the ice surface.
• C)a mantle hot spot melted the glacier in this localized area.
• D)local wind-blown deposition concentrated in this area of the glacier.

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Definitions:

Expected Risk Premium

The additional return over the risk-free rate that investors demand to compensate for the risk of holding a risky asset.

Systematic Risk Principle

The concept that an investor can reduce the overall risk of an investment portfolio through diversification, except for inherent market risks that cannot be diversified away.

Efficient Markets Hypothesis

The efficient markets hypothesis is an investment theory that states it is impossible to "beat the market" because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information.

Security Market Line

A representation in finance that shows the relationship between risk and return of a market.