When Dave,the Sales Manager,is Deciding on Who Will Train the New

question 34

Multiple Choice

When Dave,the sales manager,is deciding on who will train the new sales trainee,he tries not to look at just the recent sales numbers but also checks past sales reports to determine who is the most productive.This way he is not affected by the ______ bias.

• A)sunk-cost
• B)adjustment
• C)representativeness
• D)availability
• E)escalation of commitment

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Definitions:

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio of investments compared to the market as a whole.

Individual Securities

are financial instruments such as stocks or bonds that are owned directly by investors, as opposed to being part of a pooled investment.

Weighted Average

A calculation method that multiplies each component by a factor reflecting its importance and sums these products to derive an average.

CAPM

The Capital Asset Pricing Model (CAPM) is a financial model that describes the relationship between systematic risk and expected return for assets, particularly stocks.