You Are on a Jury

question 133

Multiple Choice

You are on a jury.The defendant is a well-dressed petite young lady.She just does not fit your idea of a murderer.It will be important for you to listen to the evidence presented rather than succumb to

• A)the framing effect.
• B)the underlying base rate.
• C)the representativeness heuristic.
• D)divergent thinking.

Analyze empirical studies and their findings on the CAPM and multifactor models.

Identify the challenges of testing the CAPM theory and the implications of these challenges.

Recognize the significance of beta in measuring a portfolio's market risk and its limitations.

Understand the role and limitations of multifactor models in explaining security returns.