The Two Lenses Shown Are Illuminated by a Beam of Parallel

question 39

Multiple Choice

The two lenses shown are illuminated by a beam of parallel light from the left.Lens B is then moved slowly toward lens A.The beam emerging from lens B is:

• A)initially parallel and then diverging
• B)always diverging
• C)initially converging and finally parallel
• D)always parallel
• E)initially converging and finally diverging

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Definitions:

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.

Beta Coefficient

A measure of a stock's volatility in relation to the overall market, indicating its level of risk compared to the market average.

Expected Return

The anticipated profit or loss from an investment, considering all possible outcomes and their probabilities.