The Idea That Prejudice and Discrimination Form a Vicious Circle

question 29

Multiple Choice

The idea that prejudice and discrimination form a vicious circle leads to the conclusion that

• A) bias is easily perpetuated over time.
• B) it is easy to prove most stereotypes to be wrong.
• C) only some people act on their prejudices.
• D) prejudice is more common than actual discrimination.

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Definitions:

Jensen's Measure

A performance evaluation tool that measures the excess return of a portfolio above the expected return, accounting for risk.

Risk-Free Return

The theoretical return on an investment with zero risk, typically represented by government securities like Treasury bills.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher than market volatility.

Treynor Measure

A performance metric for determining how well an investment compensates the investor for the risk taken, considering systematic risk.