If Someone Behaves the Way You Assume Anyone Else Would,you

question 38

Short Answer

If someone behaves the way you assume anyone else would,you give an external attribution for the behavior.If someone behaves in an unusual way,you look for an internal attribution.This criterion is called __________ information.

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Definitions:

Multifactor Model

An investment model that seeks to describe the expected returns on a security based on various risk factors, providing a more comprehensive view than models based on a single factor.

Market Indexes

Benchmarks that track the performance of a specific basket of stocks, representing a particular sector or the market as a whole.

Chen, Roll, and Ross

Refers to a model developed by the economists Stephen A. Ross, Randolph W. Roll, and Edwin H. Chen that enhances the capital asset pricing model by including factors related to macroeconomic risk.

Multifactor Models

Financial models that use multiple variables to explain or predict asset prices and returns, incorporating factors like size, value, and momentum.