A Bicyclist Claims That Bicycle Racing Times Would Be Faster

question 118

Multiple Choice

A bicyclist claims that bicycle racing times would be faster if individuals raced in groups,because the knowledge of being in a group produces more energy to perform better.The bicyclist's claim is based on the concept of

• A)social loafing.
• B)cognitive dissonance.
• C)groupthink.
• D)social facilitation.

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Definitions:

Sharpe Measure

A ratio used to evaluate the risk-adjusted return of an investment portfolio; it represents the excess return per unit of deviation in an investment.

Risk Adjusted Performance

An evaluation of an investment's return after accounting for the degree of risk that was taken to achieve it.

Portfolio

An assortment of financial assets including stocks, bonds, and commodities, as well as cash and near-cash items like mutual funds and ETFs.

Sharpe Ratio

Reward-to-volatility ratio; ratio of excess return to portfolio standard deviation.