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Two Central Components of the CAPM Are the ________

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Two central components of the CAPM are the ________.


Definitions:

Bias

A tendency to lean in a certain direction, often unfairly, in thought or decision, usually leading to a prejudiced outcome.

Halo Effect

A cognitive bias where an impression created in one area influences opinion in another area.

Similar-to-me Effect

The tendency to prefer individuals who are perceived to be similar to oneself in terms of attitudes, beliefs, and backgrounds.

Attribution/covariation Model

A psychological theory that explains how individuals infer the causes of their own and others' behavior by observing patterns of covariation.

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