Occupational Cultures Consist of the Accepted Practices, Rules, and Principles

question 127

True/False

Occupational cultures consist of the accepted practices, rules, and principles of conduct that are situationally applied as well as generalized rationales and beliefs.

---

Definitions:

Risk Aversion

The inclination of investors to avoid risk, preferring safer investments over those with higher potential for gains but also greater risk.

Total Risk

The complete scope of uncertainty or variability in returns on an investment, including both systematic and unsystematic risk factors.

Security Market Line

A representation in finance that shows the relationship between risk (as measured by beta) and expected return of investments, used in the capital asset pricing model.

Capital Market Line

A line used in the capital asset pricing model to depict the rates of return for efficient portfolios depending on the risk-free rate of return and the level of risk (standard deviation) for a particular portfolio.