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Even Though an Investor Expects a Positive Rate of Return

question 32

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Even though an investor expects a positive rate of return, it is possible that the actual return will be negative.


Definitions:

Locus of Control

A psychological concept that refers to individuals' beliefs about the extent to which the outcomes of their actions are under their personal control or influenced by external forces.

Self-Concept

Refers to the individual's perception of themselves, encompassing beliefs, feelings, and thoughts about one's own identity.

Self-Efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Accomplishing

The act of completing a task successfully or achieving a goal through effort, skill, or courage.

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