Which of the Following Statements Is Correct

question 64

Multiple Choice

Which of the following statements is correct?

• A) If the returns on a stock could vary widely,and its standard deviation is large,then the stock will necessarily have a large beta coefficient.
• B) A stock that is more highly positively correlated with "The Market" than most stocks would not necessarily have a beta coefficient that is greater than 1.0.
• C) A stock's standard deviation of returns is a measure of the stock's "stand-alone" risk,while its coefficient of variation measures its risk if the stock is held in a portfolio.
• D) A portfolio that contained 100 low-beta stocks would be riskier than a portfolio containing 100 high-beta stocks.
• E) Negative betas cannot exist;if you calculate one,you made an error.

Understand the concepts of informational social influence and normative social influence and their impact on individual behavior.

Differentiate between various experimental techniques used to study social behavior such as the jigsaw classroom technique and the Implicit Association Test.

Analyze the ethical considerations and criticisms associated with experimenting on human behavior.

Identify the effects of prejudice, stereotypes, and cultural factors on individual behavior and attitudes towards others.

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Definitions:

Exploratory Factor Analysis (EFA)

A statistical technique used to identify underlying variables, or factors, that explain the pattern of correlations among measured variables.

Factor Structure

The way in which the underlying variables or factors are organized and interrelated within a set of observed data.

Constructs

Abstract concepts that are specifically chosen or created to explain behavior in a theoretical framework.

Negatively Worded Items

Negatively worded items are questions or statements in surveys or questionnaires that are phrased in a negative manner, which can affect the responses or interpretations of the data.