A Key Element of Expectancy Theory Might Be Summarized by Saying

question 11

Multiple Choice

A key element of expectancy theory might be summarized by saying ________.

• A)most people are motivated by money
• B)everyone is always motivated by fear of failure
• C)everyone is motivated by the same thing
• D)different rewards motivate people in different ways

Determine the net benefits of implementing financial management tools and strategies.

Understand the concept of homeostasis and its role in motivation.

Comprehend the expectancy x value theory of motivation and its application to goal-directed behavior.

Identify the differences between intrinsic and extrinsic motivations and their effects on behavior.

---

Definitions:

Single-Index Structure

A model used in finance to describe the returns of a portfolio using a linear relationship between the return of the portfolio and the return of a market index.

Expected Returns

The anticipated average return on an investment, taking into account the probability of different outcomes, including both gains and losses.

Variances of Returns

The measure of the spread between numbers in a data set, representing the average of the squared differences from the mean, specifically used in the context of the returns on investments.

Single-Index Model

A simplified model that explains a security's return with its sensitivity to a single market index.