In a Multifactor Model,explain What a Factor Represents and the Role

question 3

Essay

In a multifactor model,explain what a factor represents and the role that beta plays in relation to factors.How do factors and betas affect the actual return?

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Definitions:

Personal Control

An individual's belief in their ability to influence events and their outcomes in their life.

Reciprocal Determinism

Reciprocal determinism is a psychological theory proposing that an individual's behavior is influenced by both their environment and personal factors, which in turn influence each other.

Identification

The process of recognizing or establishing as being a particular person or thing; verification of the identity of a person or thing.

Self-Serving Bias

Self-serving bias is the tendency to attribute positive events to one's own character but attribute negative events to external factors, often serving to maintain one's self-esteem.