When Asking for What You Want from a Partner, It

question 120

Multiple Choice

When asking for what you want from a partner, it is BEST if you:

• A) are very specific about what you would like.
• B) ask in the form of a yes-no question in order to get a definitive response.
• C) practice "you" language while making your request.
• D) be somewhat general in your request to avoid putting your partner on the defensive.

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Definitions:

Nonfactor Risk

Nonfactor Risk, also known as specific or idiosyncratic risk, is the part of an asset's risk that is not correlated with overall market movements and is unsystematic.

Security Market Line

A graphical representation in the Capital Asset Pricing Model that shows the relationship between the expected return of an investment and its beta, representing risk.

APT

Stands for Arbitrage Pricing Theory, a model that predicts a security's returns using the linear relationship between its expected return and macroeconomic factors.

Factor Intensity

The measure of how much of a certain factor of production (labor, capital, etc.) is used in the production of a good or service.