The Halo Effect Is the Tendency to Rate People Relative

question 76

True/False

The halo effect is the tendency to rate people relative to one another rather than against performance standards.

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Definitions:

Preferential Treatment

Special privileges or advantages granted to certain investors or stakeholders, often resulting in more favorable financial conditions.

Equity Market Share

A measure of a company's size relative to the industry or market sector in terms of its share of total equity investments.

WEBS Portfolios

WEBS Portfolios, or World Equity Benchmark Shares, offer investors a way to invest in international equity markets through exchange-traded funds, replicating specific country indexes.

Passively Managed

Refers to an investment fund or portfolio managed with a strategy that aims to replicate and mirror the performance of an underlying benchmark or index, typically resulting in lower management fees.