Consistent Behavior Patterns That People Display in Many Different Situations

question 13

Multiple Choice

Consistent behavior patterns that people display in many different situations are

• A) very difficult to identify.
• B) often called individual differences by personality psychologists.
• C) predictive of personality traits.
• D) likely to be found in depressed personalities.

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Definitions:

Optimal Risky Portfolio

A portfolio construction that maximizes expected return for a given level of risk, based on modern portfolio theory.

Risk Free Rate

The theoretical return on investment with zero risk of financial loss, often represented by the yield on government bonds from stable governments.

Standard Deviation

A measure of the dispersion or variability in a set of values, often used to quantify the risk associated with a particular investment.

Systematic Risk

The underlying threat to the entire market or a specific market sector that cannot be alleviated by spreading out investments.