The Theory of Planned Behaviour Is Based on the Fundamental

question 71

Multiple Choice

The theory of planned behaviour is based on the fundamental notion that

• A) people develop behavioural intentions before engaging in voluntary behaviour.
• B) behavioural intentions are the best predictors of actual behaviour.
• C) expectations of success influence behaviour.
• D) all of the above.

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Definitions:

Systematic Risk

The inherent risk that affects the entire market or market segment, often referred to as market risk or un-diversifiable risk.

Market Risk

The risk of losses in investments due to factors that affect the overall performance of financial markets.

High Water Mark

A clause in fund management contracts that prevents fund managers from receiving large bonuses for poor performance, ensuring they only earn a performance fee when the fund's value exceeds its previous highest value.

Incentive Fees

Fees paid to a fund manager based on performance, often as a percentage of the investment gains beyond a specified benchmark.