Describe the Three Major Types of Biases That Have Been

question 12

Essay

Describe the three major types of biases that have been found to increase false positives in lineup identifications.

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Definitions:

Investor's Return

The profit or loss realized on an investment over a specified period, often expressed as a percentage of the investment’s initial cost.

Stock Price

The cost of purchasing a share of a company's stock, which fluctuates based on supply and demand in the marketplace.

Annual Dividend

The total amount of dividends a company pays out to its shareholders in one fiscal year.

Required Return

The minimum expected return by investors for investing in a non-risk-free asset, taking into account the risk associated with the investment.