Use the Table for the Question(s)below

question 24

Multiple Choice

Use the table for the question(s) below.
Consider the following average annual returns:
-Common risk is also called:

• A)diversifiable risk.
• B)correlated risk.
• C)uncorrelated risk.
• D)independent risk.

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Definitions:

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors in judging others' behavior.

Confirmation Bias

The inclination to seek out, understand, prefer, and remember information in a manner that reaffirms one’s already held beliefs or theories.

External Attribution

The process of assigning the cause of behavior to some situation or event outside a person's control rather than to some internal characteristic.

Situational Components

Elements of an environment or context that can influence individuals' behavior, thoughts, and feelings in a given situation.