The Importance of Higher General Mental Ability for High Performance

question 147

True/False

The importance of higher general mental ability for high performance is stronger for manual labor positions compared to management positions.

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Definitions:

Alphas

The excess returns of an investment relative to the return of a benchmark index, indicating the added value by the portfolio manager.

Betas

A measure of a stock's volatility relative to the overall market; a reflection of its risk compared to the market.

Arbitrage Opportunity

A situation where a trader can make a profit without risk by simultaneously buying and selling the same or equivalent assets in different markets to exploit price differences.

Risk-free Rate

A theoretical return on an investment with zero risk of financial loss, often represented by government bonds.