According to Capital Asset Pricing Theory, the Key Determinant of Portfolio

question 59

Multiple Choice

According to capital asset pricing theory, the key determinant of portfolio returns is ________.

• A) the degree of diversification
• B) the systematic risk of the portfolio
• C) the firm-specific risk of the portfolio
• D) economic factors

Analyze the impact of globalization and economic policies on workers and industries.

Assess the role of government and public policy in shaping economic conditions and labor rights.

Understand the concept of telecommuting and its implications for workers and businesses.

Recognize the evolution of urbanization and its relationship with economic changes and technology.

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Definitions:

Overjustification Effect

A psychological phenomenon where providing an external incentive for a behavior someone already finds rewarding leads to a reduction in intrinsic motivation.

Intrinsic Motivations

Internal drives to perform a task or engage in an activity purely because of the inherent satisfaction and enjoyment derived from doing it.

Extrinsic Motivations

Inspiration fueled by outside incentives, including financial gain, recognition, academic achievement, and commendation.

Overjustification Effect

A phenomenon where providing an external incentive for a behavior that is already internally rewarding can lead to a decrease in intrinsic motivation for that behavior.