One Shortcoming with the Trait Theory Is Its Insistence That

question 24

Multiple Choice

One shortcoming with the trait theory is its insistence that:

• A) behavior is consistent across all situations
• B) personality traits have a strong genetic basis
• C) the Big Five traits are valid
• D) the situation can change behavior

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Definitions:

SML

Stands for Security Market Line; it represents the relationship between the expected return of an investment and its risk in the capital asset pricing model (CAPM).

Beta of the Portfolio

An assessment of a portfolio's volatility or inherent risk, relative to the overall market.

Required Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put their money into it.

Risk-free Rate

The return on an investment with zero risk; typically represented by the yield on government bonds.