Sharon Believes That Intelligence and Ability Are Innate and You

question 59

Multiple Choice

Sharon believes that intelligence and ability are innate and you cannot do anything to change them. Sharon has a(n) ________ theory of ability.

• A) entity
• B) incremental
• C) schematic
• D) rigid

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Definitions:

Security Characteristic Line

A graph that shows the relationship between the returns of a security versus the returns of the market, used in the analysis of a security's risk and return.

Benchmark Error

Use of an inappropriate proxy for the true market portfolio.

Capital Market Line

In the capital asset pricing model, a line that describes the risk-return trade-off for efficient portfolios, showing that higher risk leads to higher expected return.

Measurement Error

The difference between a measured value of quantity and its true value, often due to imperfections in measurement tools or techniques.