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How Do Peer Groups Serve as "Bad Influences" During the Process

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How do peer groups serve as "bad influences" during the process of social learning? Which theory of deviance attempts to explain this phenomenon?


Definitions:

Systematic Risk

The unavoidable risk associated with the whole market or a segment of it, referred to as market risk, that diversification cannot mitigate.

Chen, Roll, Ross

Refers to a model or theory in financial economics developed by the researchers Chen, Roll, and Ross, typically associated with their work on the arbitrage pricing theory or factor models.

Multifactor Models

Financial models that evaluate assets by taking into account multiple economic and statistical factors to explain market phenomena and asset returns.

Risk-free Rate

The anticipated earnings on an investment considered free from financial risk, usually related to sovereign bonds.

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