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Explanations That People Construct About Behavior in Which the Cause

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Explanations that people construct about behavior in which the cause resides outside the actor are called dispositional attributions.


Definitions:

Risk-Free Rates

The theoretical return on investment with no risk of financial loss, typically represented by the yield on government securities.

Arbitrage Opportunities

Situations where an asset is priced differently in two or more markets, allowing for the profit from the price differences.

Spot Exchange Rate

The current exchange rate at which a currency pair can be bought or sold.

Portfolio's Beta

An indicator of the fluctuation or inherent risk of a portfolio relative to the overall market.

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