In Kelley's Covariation Attribution Theory, Behaviors Low in Distinctiveness Tend

question 9

Multiple Choice

In Kelley's covariation attribution theory, behaviors low in distinctiveness tend more to lead to _____ attribution.

• A) situational
• B) conformity
• C) external
• D) dispositional

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Definitions:

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio.

Idiosyncratic Risk

The risk associated with an individual asset, which can be mitigated through diversification.

Systematic Risk

Systematic risk refers to the inherent risk that affects the entire market or a major market segment and cannot easily be mitigated through diversification.

Diversifiable Risk

A type of investment risk that can be reduced or eliminated through diversification of an investment portfolio.