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A Researcher Obtains Individuals' Permission Before Randomly Assigning Them to the Treatment

question 162

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A researcher obtains individuals' permission before randomly assigning them to the treatment or the control group. She is complying with the basic ethical principle regarding:


Definitions:

Capital Asset Pricing Model

A framework that explains the connection between inherent risk and anticipated return on investments, especially in the context of equities.

Beta

A measure of a stock's volatility in relation to the overall market, indicating how much the stock price is expected to fluctuate.

Arbitrage Pricing Theory

A financial model that determines the theoretical return of an asset by considering multiple macro-economic factors or theoretical market indices.

Systematic Risk Factors

External risks that affect an entire market or asset class, and cannot be mitigated through diversification.

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