A Large Tank Filled with Water Has Two Holes in the Bottom

question 87

Multiple Choice

A large tank filled with water has two holes in the bottom, one with twice the radius of the other.In steady flow the speed of water leaving the larger hole is ________ the speed of the water leaving the smaller.

• A)twice
• B)four times
• C)half
• D)one-fourth
• E)the same as

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Definitions:

Efficient Frontier

Graph representing a set of portfolios that maximize expected return at each level of portfolio risk.

Market Portfolio

The portfolio encompassing all assets in which each asset is held in proportion to its market value.

Beta

The measure of the systematic risk of a security. The tendency of a security’s returns to respond to swings in the broad market.

Market Risk

Risk factors common to the whole economy; also called systematic or nondiversifiable risk.