Attribution Theory Concerns Our Tendency to Explain Our Behavior and That

question 90

Multiple Choice

Attribution theory concerns our tendency to explain our behavior and that of others

• A)by external causes rather than internal causes.
• B)by inferring causes on the basis of internal or external factors.
• C)by internal rather than external causes.
• D)based on personality factors.

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Definitions:

Active Portfolio

A portfolio management strategy where an investment manager makes specific investments with the goal of outperforming an investment benchmark index.

Nonsystematic Variance

The portion of an investment's variance that is due to factors specific to the individual investment, rather than factors affecting the entire market.

Market Index

A statistical measure that represents the overall performance of a selected set of stocks, designed to reflect the movements and trends of the market or a specific sector.

Active Portfolio

An investment portfolio managed with the intention to outperform the market by selecting and managing investments through active decision-making.