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Acquiescence Bias Is a Type of Response Bias That Results

question 39

True/False

Acquiescence bias is a type of response bias that results because individuals tend to use extremes when responding to questions.


Definitions:

Market Rate of Return

The average return on investment that is typically expected from an asset class over a period.

Expected Return

The mean of all potential investment returns, adjusted for the probability of each result occurring.

Security's Beta

A measure of an investment's volatility compared to the market as a whole, indicating its risk in relation to the market.

Risk Premium

The extra return expected from an investment for taking on additional risk.

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