Rather Than Relying on the Efficiency of a Single Portfolio

question 27

Multiple Choice

Rather than relying on the efficiency of a single portfolio (such as the market) ,multifactor models rely on ________ that an efficient portfolio can be constructed from a collection of well-diversified portfolios or factors.

• A) the stronger condition
• B) the neutral condition
• C) the weaker condition
• D) the unbiased condition

---

Definitions:

Mirror Neuron Activity

The firing of neurons in the brain that occurs both when an individual performs an action and when they observe the same action performed by another, thought to be related to understanding intentions, empathy, and learning through imitation.

Imitative Yawning

The reflexive act of yawning in response to seeing, hearing, or thinking about someone else yawning.

Autism

A developmental disorder characterized by difficulties in social interaction and communication, and by restricted or repetitive patterns of thought and behavior.

Theory Of Mind

People’s ideas about their own and others’ mental states—about their feelings, perceptions, and thoughts, and the behaviors these might predict.