The _________ Effect States That a Manager's Influence on the Organization

question 105

Multiple Choice

The _________ effect states that a manager's influence on the organization has implications far beyond the results that can be achieved by one person acting alone.

• A)proliferation
• B)multiplier
• C)managerial
• D)halo
• E)additive

---

Definitions:

Historical Beta

A measure of a stock's volatility in relation to the market, based on past performance.

Beta

A measure of the volatility, or systemic risk, of a security or a portfolio in comparison to the market as a whole; it indicates the tendency of a security's returns to respond to swings in the market.

CAPM (Capital Asset Pricing Model)

A model used to determine the expected return on an investment based on its level of risk, as well as the risk-free rate of return and the expected market return.

Risk Premium

The extra return expected by an investor for holding a risky asset compared to a risk-free asset, as compensation for the higher risk.