Which of the Following Statements Is False About Models That

question 55

Multiple Choice

Which of the following statements is false about models that attempt to measure the empirical performance of the CAPM?I) The conventional CAPM works better than the conditional CAPM with human capital.II) The conventional CAPM works about the same as the conditional CAPM with human capital.III) The conditional CAPM with human capital yields a better fit for empirical returns than the conventional CAPM.

• A) I only
• B) II only
• C) III only
• D) I and II
• E) II and III

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Definitions:

Sensorimotor Thought

A stage in cognitive development, according to Piaget, where infants interact with their environment through physical actions like sucking, grasping, and looking.

Tertiary Circular Reactions

describe a stage in Piaget's theory of cognitive development where infants (12-18 months) experiment with new behaviors to see the outcomes, demonstrating an early form of problem-solving.

Primary Circular Reactions

Early infantile behaviors that are repetitive and centered around the body, forming the basis for the development of more complex skills.

Simple Reflexes

Basic, involuntary motor responses to specific stimuli, evident in human behavior from an early age.