Final answer:
The momentum effect is a characteristic of a momentum index, which includes investments with strong return performance over recent periods. The correct answer to the student's question is d) Momentum index.
Step-by-step explanation:
The student's question relates to the characteristic known as the momentum effect, which specifically pertains to a momentum index. In physics, momentum is defined as the product of an object's mass and velocity. This means that an object which has mass and is moving will have momentum. An important concept related to momentum is impulse, which refers to the change in momentum of an object that occurs when a force is applied over a time interval.
When the question asks about the momentum effect and its association with an index, it is important to clarify that the index in question is one that tracks or aims to capture the performance of securities exhibiting strong momentum characteristics. Thus, the correct option would be d) Momentum index. This type of index would include stocks or investments that have shown strong returns over a recent period, under the expectation that they may continue to perform well in the near term, owing to their ongoing momentum.
In terms of the other definitions provided, the rate of change of velocity is called acceleration, and not any of the other terms mentioned. Correctly identifying this allows us to understand the difference between a change in an object's velocity, which concerns its speed or direction, versus a change in momentum, which considers both mass and velocity.
The correct answer to the student's question is d) Momentum index.