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The Hawthorne Effect Refers to Changes in the Subject's Behavior

question 20

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The Hawthorne effect refers to changes in the subject's behavior caused by the researcher's presence or by the subject's awareness of being studied.


Definitions:

Excess Returns

The return on an investment beyond the return expected from risk level, often used to assess performance.

Risk-free Asset

A theoretical financial instrument that promises a certain return with no risk of financial loss, often exemplified by government bonds.

Positively Skewed

Describes a distribution of data where the right tail (higher values) is longer than the left, indicating that a variable has more values that are significantly higher than the mean.

Underestimates Risk

The situation where the potential for loss in investments or strategies is not fully recognized or assessed.

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