Herbert Simon, One of the First Social Scientists to Combine

question 445

Multiple Choice

Herbert Simon, one of the first social scientists to combine the study of economics and psychology, suggested that humans should be viewed as

• A)rational maximizers.
• B)satisficers.
• C)independent thinkers.
• D)signalers.

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Definitions:

Risk

The exposure to uncertainty and the potential for losing something of value, in finance typically referring to the uncertainty in investment returns.

Perfectly Negatively Correlated

A statistical measure indicating that two variables move in opposite directions with a correlation coefficient of -1.

Equal Weighted

An investment approach where each asset in a portfolio is given the same financial importance.

Portfolio Return

The overall gain or loss achieved by an investment portfolio, comprising assets of diverse types.