What Actual Event Could Have Been Predicted Based on the Results

question 292

Multiple Choice

What actual event could have been predicted based on the results of Zimbardo's classic study at Stanford University?

• A)The prison break at Attica prison in New York
• B)The events in Waco,Texas,in which followers of a cult were killed by government agents
• C)The events at Abu Ghraib prison in Iraq
• D)The attacks on the World Trade Center on September 11,2001

---

Definitions:

Beta

A measure of a stock's volatility in relation to the overall market, indicating its risk compared to the market average.

Unsystematic Risk

The risk associated with a specific company or industry, which can be mitigated through diversification, unlike systematic risk.

Covariance Risk

The degree to which two assets' returns move in relation to each other, indicating the risk inherent in holding the assets together in a portfolio.

Systematic Risk

The risk inherent to the entire market or market segment, often referred to as market risk, which cannot be eliminated through diversification.