According to the LOT-R, an Individual's Tendency to View the World

question 71

Multiple Choice

According to the LOT-R, an individual's tendency to view the world and the future in positive ways is called

• A)openness to experience.
• B)agreeableness.
• C)satisfaction with life.
• D)dispositional optimism.

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Definitions:

Beta

A measurement of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.

Capital Market Line

A theoretical line representing the risk versus return of the market of all investable assets, assuming risk-free borrowing and lending rates.

Security Market Line

A representation of the capital asset pricing model which shows the relationship between risk (as measured by beta) and expected return of investments.

Expected Return

The anticipated profit or loss an investment is predicted to generate, acknowledging the potential for volatility and risk.