Managers Make Attributions About Employees Based on "Consistency" and "Distinctiveness

question 4

Multiple Choice

Managers make attributions about employees based on "consistency" and "distinctiveness" as well as "the extent to which an employee's performance is the same or different from other employees," otherwise known as:

• A) attributes.
• B) stereotype.
• C) consensus.
• D) differentiation.
• E) habit.

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Definitions:

Listed Beta

A measure of a stock's volatility in relation to the overall market, calculated and reported by financial exchanges or services.

True Beta

A measure of a stock's volatility in relation to the market, adjusted for its unique characteristics and the market environment.

Mutual-fund Theorem

A principle in finance that suggests diversifying investments across a broad range of assets to reduce risk without sacrificing return, associated with the modern portfolio theory.

Passive Investment Strategy

Investing in a diversified portfolio or market index without attempting to search out mispriced securities.