An Inclination or a Preference That Interferes with Impartial Judgment

question 49

Multiple Choice

An inclination or a preference that interferes with impartial judgment is known as which of the following?

• A) Found reasoning
• B) Profiling
• C) Ethnocentrism
• D) Bias
• E) Net neutrality

Understand the difference between systematic and unsystematic risk.

Analyze the impact of portfolio diversification on risk management.

Recognize how different types of risks affect asset prices and returns.

Understand the concept of beta and its significance in measuring systematic risk.

---

Definitions:

Enduring Truth

A concept or fact that remains valid and reliable over time.

Phenomena

Observable events or occurrences that can be studied scientifically to understand natural or social processes.

Phenylketonuria (PKU)

A genetic disorder caused by a defect in the gene responsible for processing the amino acid phenylalanine, leading to its accumulation and resulting in cognitive disability if untreated.

Phenylalanine

An essential amino acid that is a precursor for neurotransmitters such as dopamine and norepinephrine, important for brain function.