Research Indicates That Broad Traits May Be Able to Predict

question 32

Multiple Choice

Research indicates that broad traits may be able to predict behaviour across a range of situations, and that _______________ may better predict behaviour in specific situations.

• A)narrow traits
• B)higher-order factors
• C)secondary traits
• D)primary dimensions

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Definitions:

Risk-Free Rate

The anticipated rate of return on an investment devoid of risk, commonly represented by the interest rates of government bonds.

Market Risk Premium

The extra return expected by investors for holding a risky market portfolio instead of risk-free assets, reflecting the additional risk.

Overall Operations

Refers to the comprehensive activities and processes undertaken by a business to produce and sell its products or services.

Overall Cost of Capital

The weighted average rate of return a company must pay to finance its assets, combining the cost of debt and equity funding.