A Limitation of Psychological Theories Is __________

question 76

Multiple Choice

A limitation of psychological theories is __________.

• A) They do not reinforce behavior.
• B) They leave out important elements (e.g., sociocultural factors).
• C) They make too many assumptions.
• D) They cannot evaluate programs.

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Definitions:

Superior Returns

Returns that exceed the performance of a benchmark index or the average returns of a particular investment category.

Neglected-firm Effect

A theory suggesting that lesser-known, smaller companies can provide higher returns than their larger counterparts due to lack of analyst coverage.

Excess Returns

Returns on an investment that exceed a benchmark or average return, indicating higher-than-expected performance.

Abnormal Returns

Returns on a security or portfolio that exceed what is predicted by market models, such as the CAPM, indicating outperformance.