Generalized Rules of Conduct That Tell Us How We Ought

question 58

Multiple Choice

Generalized rules of conduct that tell us how we ought to behave are called

• A) instincts.
• B) social norms.
• C) obedience.
• D) demand characteristics.

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Definitions:

Bears All The Risk

A term referring to the situation where an individual or entity assumes the entire risk associated with an investment or decision.

Variable Annuity Contract

A retirement investment product that provides periodic payments to the holder, where the amounts can vary based on the investment performance of the selected options.

Prudent Investor Rule

An investment manager must act in accord with the actions of a hypothetical prudent investor.