Which of the Following Investment Strategies Involves Generating a Higher

question 64

Multiple Choice

Which of the following investment strategies involves generating a higher expected rate of return through increasing risk?

• A) Diversifying
• B) Hedging risk
• C) Leverage
• D) Value at risk

Understand the concept of self-directed work teams and their dynamics.

Differentiate between constructive conflict and problems such as groupthink in teams.

Understand the reasons for joining and the benefits of participating in informal groups.

Describe various types of teams and their characteristics, such as task forces and skunkworks teams.

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Definitions:

Fundamental Attribution Error

The tendency to underestimate situational influences and overestimate personal traits when explaining others' behaviors.

Actor/observer Bias

A cognitive bias that explains differences in how people attribute causes to their own versus others' behavior; typically attributing one's own actions to situational factors and others' actions to personal characteristics.

Internal Attributions

Explanations for people's behaviors based on their internal characteristics, such as personality traits, motives, or attitudes, as opposed to the influence of external circumstances.

External Attributions

The process of assigning the cause of a behavior or event to factors outside the individual, such as situational or environmental influences.