Parametric or Empirical Models Rely On

question 34

Multiple Choice

Parametric or empirical models rely on:

• A) security betas explaining systematic factor relationships.
• B) finding regularities and relations in past market data.
• C) there being no true explanations of pricing relationships.
• D) always being able to find the exception to the rule.
• E) None of these.

---

Definitions:

Psychology

The scientific study of the mind and behavior, encompassing a wide range of topics from biological influences to social pressures.

Scientific Goal

The aim or objective of conducting research to discover, interpret, or revise facts, behaviors, theories, or applications.

Behavior

The observable actions or responses of an organism, typically in response to its environment or internal cues.

Functionalism

James’s approach to mental processes, emphasizing the functions and purposes of the mind and behavior in the individual’s adaptation to the environment.