A Long-Short Investment Strategy Is Used in the Case Where

question 21

Multiple Choice

A long-short investment strategy is used in the case where the target is being tracked vastly differs from a diversified market portfolio.In such a situation,a _____ model is being used.

• A) multi-index
• B) single-index
• C) multi-asset pricing
• D) value at risk

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Definitions:

Social Learning

A theory that suggests individuals can learn new behaviors and attitudes through the observation of others, including their peers, parents, and media representations.

External Locus of Control

The belief that one's fate or the outcomes of one's actions are controlled by external forces beyond personal control.

Shaping

A method of conditioning that uses reinforcements to guide behavior toward a desired outcome, by rewarding successive approximations of the target behavior.

Reciprocal Determinism

A concept in psychology that suggests that a person's behavior both influences and is influenced by personal factors and the social environment.