Conformity Is Defined as the Tendency to Adjust Your Opinions

question 37

True/False

Conformity is defined as the tendency to adjust your opinions, judgments, or behavior so that they match the opinions, judgments, or behavior of other people, or the norms of a social group or situation.

Understand the implications of market beta, SMB beta, and HML beta on stock returns.

Analyze the difference in expected returns between the single factor model and the Fama-French Three Factor Model.

Calculate the expected return of a well-diversified portfolio using both single and multifactor models.

Evaluate the impact of systematic risk factors on asset returns in the context of both one-factor and multifactor models.

---

Definitions:

Business Entity Assumption

An accounting principle that treats a business as an independent entity separate from its owners for accounting and legal purposes.