In Rosenthal and Jacobson's "Bloomers" Study, the Children Who Had

question 38

Multiple Choice

In Rosenthal and Jacobson's "bloomers" study, the children who had been randomly assigned the label of "bloomers":

• A) showed no improvement over the year
• B) had a slight drop in their IQ scores by the end of the year
• C) made significantly larger gains than the children not labeled as bloomers
• D) improved just as much as the other students in the class

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Definitions:

Market Risk Premium

The additional return over the risk-free rate that investors require to compensate them for the risk of holding a risky market portfolio.

Countercyclical Beta

Countercyclical beta refers to the measure of an asset’s return sensitivity in opposition to market trends, often gaining value in downturns.

Fama-French Three-factor Model

An asset pricing model that expands on the capital asset pricing model by including size risk and value risk factors in addition to market risk.

CCAPM

Consumption Capital Asset Pricing Model; it extends the Capital Asset Pricing Model by considering the consumption habits of investors to explain asset prices.