What Is Metacognition

question 131

Multiple Choice

What is metacognition?

• A) knowledge about the process of memory.
• B) the ability to think about one's own thoughts.
• C) a hypothesis that explains cognitive development during middle childhood.
• D) the combination of the following cognitive skills: attention, memory, and planning.

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Definitions:

Zero-Beta Security

A financial instrument whose returns are not correlated with those of the market, meaning it has a beta of zero, thus not contributing to portfolio volatility.

Expected Return

The probability-weighted average of the possible outcomes.

Risk Premium

The extra return above the risk-free rate that investors require as compensation for the risk of an investment.

Alpha

In investing, alpha is the measure of an investment's return relative to a benchmark index's performance, representing the value that a portfolio manager adds or subtracts from a fund's return.