The FBI and the CIA Failed to Prevent the Terrorist

question 153

Multiple Choice

The FBI and the CIA failed to prevent the terrorist attack on the World Trade Center. Therefore, these government agencies should be abolished immediately.

• A) Missing the point.
• B) Red herring.
• C) False cause.
• D) No fallacy.
• E) Hasty generalization.

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Definitions:

Single-Index Structure

A model used in finance that relates the returns of a stock to the returns of a market index through a single beta factor.

Covariances

A measure indicating the extent to which two variables change in tandem over time.

Well-Diversified Portfolio

A collection of investments that spans various assets to minimize risk while maximizing returns.

Single Index Model

A simplified model to estimate the return of a security based on the return of the market as a whole and the security's sensitivity to the market.