Fatima Is Interested in Studying the Effect of Parental Relationships

question 67

Multiple Choice

Fatima is interested in studying the effect of parental relationships on a child's later ability to form loving relationships with others. Which of the following is Fatima interested in studying

• A) relationship personality
• B) similarity-attraction hypothesis
• C) attachment theory
• D) propinquity effect

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Definitions:

Arbitrage Pricing Theory

A financial model that estimates the return of an asset by considering multiple risk factors and their respective risk premiums, excluding unsystematic risk through diversification.

Nonsystematic Risk

The risk associated with a specific issuer of a security, also known as idiosyncratic or unsystematic risk, that can be reduced through diversification.

Well-Diversified Portfolio

An investment portfolio that includes a mix of assets (e.g., stocks, bonds, real estate) to reduce risk through diversification.

Nonsystematic Variance

Refers to the variability in a security or portfolio returns that is not due to market-wide influences but rather specific to an individual security or firm.