Social Comparison Theory Suggests That We Often Learn About Ourselves

question 337

Multiple Choice

Social comparison theory suggests that we often learn about ourselves by comparing:

• A) one individual's performance with that of another.
• B) our present performance with our past performance.
• C) our performance with that of other people.
• D) different groups to find the one we are most compatible with.

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Definitions:

U.S. Investor

An individual or entity based in the United States that allocates capital with the expectation of receiving financial returns.

Treynor Measure

A performance metric for determining how well an investment portfolio has compensated the investor for taking risk, adjusted for market volatility.

Standard Deviation

A measure of the dispersion or variability in a set of data points, often used in finance to indicate the volatility of an investment.

Beta

An indicator of the level of fluctuation, or inherent risk, of an investment or group of investments relative to the overall market.