Albert Einstein Said, "Theories Should Be as Simple as Possible

question 34

Essay

Albert Einstein said, "Theories should be as simple as possible, but not more so." Why and how is this important in understanding social science methods and the whole purpose of social science?

Understand the treatment and management strategies for ADHD and how diagnostic criteria can evolve.

Be aware of the subjective nature of DSM-5's labels and the potential for bias in diagnosis and treatment.

Understand the prevalence and factors associated with nonsuicidal self-injury.

Identify predictors and non-predictors of violent behavior and suicide risks.

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Definitions:

Neglected-firm Effect

A theory suggesting that lesser-known, smaller companies can provide higher returns than their larger counterparts due to lack of analyst coverage.

Excess Returns

Returns on an investment that exceed a benchmark or average return, indicating higher-than-expected performance.

Abnormal Returns

Returns on a security or portfolio that exceed what is predicted by market models, such as the CAPM, indicating outperformance.

Hyman Minsky

An American economist known for his theories on financial instability and the inherent tendency of financial markets to move towards crisis.