Delta Is Needed to Estimate the Amount of Additional Reward

question 82

True/False

Delta is needed to estimate the amount of additional reward you will receive for purchasing a risky asset instead of a risk-free asset.

---

Definitions:

Kelley's Covariation Model

a psychological theory that explains how individuals attribute cause to behavior based on the consistency, distinctiveness, and consensus of the observed action.

Consensus

General agreement among a group of people or within a community.

Consistency

The principle of maintaining uniformity or stability in one's beliefs, attitudes, and behaviors over time or across situations.

Kelley's Covariation Model

This model proposes that people attribute behavior to factors that covary most closely with, or appear to cause, that behavior, considering consensus, distinctiveness, and consistency information.