Stan Believes in Fate

question 393

Multiple Choice

Stan believes in fate. He doesn't think it matters what he eats because his father had a heart attack and died at a young age. Stan believes the same will happen to him. Stan probably has

• A)reciprocal determinism
• B)an internal locus of control
• C)an external locus of control
• D)high self-esteem
• E)generalized expectancy

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Definitions:

Unsystematic Risk

The risk associated with a specific company or industry, which can be mitigated through diversification, unlike systematic risk.

Covariance Risk

The degree to which two assets' returns move in relation to each other, indicating the risk inherent in holding the assets together in a portfolio.

Systematic Risk

The risk inherent to the entire market or market segment, often referred to as market risk, which cannot be eliminated through diversification.

Coefficient of Variation Risk

A statistical measure used to assess the risk of an investment by calculating the ratio of the standard deviation to the mean return, indicating variability in relation to the expected return.