The Just-World Assumption

question 65

Multiple Choice

The just-world assumption

• A)takes into account uncontrollable factors and prevents discrimination.
• B)discounts the uncontrollable factors that can derail one's efforts.
• C)has nothing to do with discrimination.
• D)has nothing to do with people's negative evaluations of others.

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Definitions:

High Water Mark

The previous value of a portfolio that must be reattained before a hedge fund can charge incentive fees.

Incentive Fees

Fees paid to a fund manager based on the performance of the fund, designed to align the interests of the manager with those of the investors.

Portfolio Value

The total worth of all the financial assets held in an investment portfolio.

Statistical Arbitrage

A strategy that uses statistical and computational techniques to exploit inefficiencies or price differences in financial markets, often involving complex models and high-frequency trading.