Taking a Broader Perspective: the Problem of External Validity When

question 34

Multiple Choice

Taking a Broader Perspective: The Problem of External Validity When subjects react to being observed, they may behave differently than those who are not observed.This creates a problem involving

• A)confounding.
• B)experimenter bias.
• C)external validity.
• D)internal validity.

Understand the fundamentals of the Capital Asset Pricing Model (CAPM) including the definition of alpha (α) and beta (β).

Identify and interpret regression parameters in financial analysis, especially beta adjustments and the intercept values.

Grasp the concepts of diversification, systematic risk, and unsystematic risk in portfolio management.

Recognize the use of regression analysis in estimating the index model for stocks.

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Definitions:

Ingroup Bias

The tendency for people to give preferential treatment and have more positive attitudes towards members of their own group as opposed to those of an outgroup.

Expressed Support

Vocal or demonstrated actions and reassurances provided to someone to demonstrate care, understanding, or solidarity.

Diversity

The inclusion of individuals representing more than one national origin, color, religion, socioeconomic stratum, sexual orientation, etc., in a group or organization.

Ethnic Groups

People who identify with each other based on shared cultural, linguistic, or ancestral characteristics.