Which of the Following Statements Is NOT True About Tropical

question 1

Multiple Choice

Which of the following statements is NOT true about tropical rain forests?

• A)Tropical rain forest land contains rich soil that is desirable as farmland.
• B)Ranchers only temporarily benefit from deforestation.
• C)People are settling in tropical rain forests due to road construction.
• D)Humans remove vegetation for fuel or to feed animals.
• E)Destruction of rain forests can lead to desertification.

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Definitions:

Capital Asset Pricing Model

A model that describes the relationship between systematic risk and expected return for assets, particularly stocks; it is used to determine a theoretically appropriate required rate of return of an asset.

Specific Risk

Risk associated with individual investments or a small group of assets, distinct from market risk.

Two-factor Model

A Two-factor Model in finance is an asset pricing model that uses two variables to calculate the value of an asset or the expected return.

Commodity Prices

The market prices for raw materials or primary agricultural products.