A Major Flaw of Simulation Analysis Is That It Fails

question 18

True/False

A major flaw of simulation analysis is that it fails to consider the possibility that risk may be removed through diversification.

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Definitions:

Individualist

describes a person or cultural orientation that values independence, personal goals, and self-reliance over group goals and interdependence.

Conformity Bias

Tendency for social psychology to treat group influence as a one-way process in which individuals or minorities always conform to majorities.

Cultural Adaptation

Involves the process of adjusting and integrating into a culture different from one's own, which may include adopting new behaviors, practices, and attitudes.

Social Influence

The effect that the words, actions, or mere presence of other people have on our thoughts, feelings, attitudes, or behavior.