If You Define a Concept in Terms of the Procedures

question 11

Multiple Choice

If you define a concept in terms of the procedures followed while measuring the concept,you are using a(n) :

• A)positivistic definition
• B)operational definition
• C)scientific law
• D)observational term

---

Definitions:

Firm-Specific Risk

The risk associated with an investment in a particular company, including factors such as management competence and product demand.

Total Risk

The complete set of risks associated with an investment, including both systematic and unsystematic risks.

Beta Coefficient

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher volatility, while a beta less than 1 indicates lower volatility.

Negatively Correlated

A relationship between two variables in which one variable increases as the other decreases.