(Thinking Critically) Many Psychologists Are Opposed to the Use of Lie

question 85

Multiple Choice

(Thinking Critically) Many psychologists are opposed to the use of lie detectors because

• A) they represent an invasion of a person's privacy and could easily be used for unethical purposes.
• B) there are often serious discrepancies among the various indicators such as perspiration and heart rate.
• C) polygraphs cannot distinguish the various possible causes of arousal.
• D) they are accurate only about 50 percent of the time.

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Definitions:

Multifactor Model

An investment model that seeks to describe the expected returns on a security based on various risk factors, providing a more comprehensive view than models based on a single factor.

Market Indexes

Benchmarks that track the performance of a specific basket of stocks, representing a particular sector or the market as a whole.

Chen, Roll, and Ross

Refers to a model developed by the economists Stephen A. Ross, Randolph W. Roll, and Edwin H. Chen that enhances the capital asset pricing model by including factors related to macroeconomic risk.

Multifactor Models

Financial models that use multiple variables to explain or predict asset prices and returns, incorporating factors like size, value, and momentum.