In Collective Cultures It Is Often Observed That Groups Favour

question 27

Multiple Choice

In collective cultures it is often observed that groups favour an equality norm for reward allocation.Which theory's motivational premises does this norm most clearly contradict?

• A)ERG theory
• B)Expectancy theory
• C)Equity theory
• D)Maslow's need hierarchy
• E)McClelland's theory of needs

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Definitions:

Single Factor Model

A financial model that describes the return on a security as a function of a single factor, typically the market return, plus security-specific variations.

Risk Premium

The extra return expected by an investor for holding a risky asset instead of a risk-free asset, serving as compensation for bearing additional risk.

Arbitrage Opportunity

An arbitrage opportunity is the chance to buy an asset at a low price in one market and sell it at a higher price in another, taking advantage of the price difference for profit.

Expected Return

The anticipated amount of returns an investment is expected to generate, calculated as a weighted average of possible returns, based on their probabilities.