Benchmark Error

question 14

Multiple Choice

Benchmark error

• A)refers to the use of an incorrect market proxy in tests of the CAPM.
• B)can result in inconclusive tests of the CAPM.
• C)can result in incorrect evaluation measures for portfolio managers.
• D)refers to the use of an incorrect market proxy in tests of the CAPM and can result in inconclusive tests of the CAPM.
• E)All of the options.

---

Definitions:

Stereotype Threat

The risk of confirming negative stereotypes about one's group, which can impair performance in a variety of settings.

Self-handicapping

A cognitive strategy by which individuals avoid effort in the hopes of keeping potential failure from hurting self-esteem.

Lifelong Monogamy

The practice or state of having a sexual relationship with only one partner throughout one's lifetime.

Human Behavior

Encompasses the range of actions and mannerisms exhibited by humans in conjunction with their environment, social structures, and culture.