The Treynor-Black Model

question 40

Multiple Choice

The Treynor-Black model

• A) considers both macroeconomic and microeconomic risks.
• B) considers security selection only.
• C) is nearly impossible to implement.
• D) considers both macroeconomic and microeconomic risks and is nearly impossible to implement.
• E) considers security selection only and is nearly impossible to implement.

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Definitions:

Perilous Situation

A dangerous or risky circumstance that can potentially lead to harm.

Ordinary Situation

A scenario or condition that is considered common, typical, or usual in everyday life.

Distant Relative

A family member who is not closely related, often beyond immediate family such as cousins several times removed, or through remote ancestral connections.

Bystander-Calculus Model

In attending to an emergency, the bystander calculates the perceived costs and benefits of providing help compared with those associated with not helping.