One Way to Reduce the Effects of the Presence of the Observer

question 228

Multiple Choice

One way to reduce the effects of the presence of the observer on the behavior of the observed is to

• A)conceal the observer or use hidden camera recorders.
• B)take careful notes using a rating scale.
• C)make friends with the observed.
• D)record only selected details by using a behavioral assessment instrument.

Calculate portfolio betas and understand the impact of portfolio composition changes on its beta.

Apply the concept of beta to determine the risk profile of stocks and portfolios in relation to the market.

Understand the impact of macroeconomic variables, such as GDP growth, on stock returns.

Recognize how company-specific and market risks influence expected stock returns.