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When Are Assessments Generally Performed

question 47

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When are assessments generally performed?

Understand the role and limitations of multifactor models in explaining security returns.
Examine how benchmark errors impact the interpretation of CAPM tests.
Assess the impact of market efficiency on the validity of CAPM.
Understand how survivorship bias and other biases affect CAPM and related studies.

Definitions:

Concordance Rates

The probability that two individuals with shared genetics, such as twins, will both exhibit a particular trait or disorder, used in genetics and psychology to study inheritance patterns.

Monozygotic Twins

Identical twins that result from the fertilization of a single egg that then splits into two, sharing 100% of their genetic material.

Dizygotic Twins

Also known as fraternal twins, these are siblings born at the same time but developed from two separate eggs fertilized by two different sperm.

Coefficient Alpha

A statistical measure, also known as Cronbach's alpha, used to assess the reliability or internal consistency of a set of scale or test items.

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