The Two Factors Below That Most Often Explain the Divergence

question 48

Multiple Choice

The two factors below that most often explain the divergence of actors' and observers' attributions are

• A)the fundamental attribution error and self-serving biases.
• B)differences in motivation and differences in ability.
• C)perceptual salience effects and differentially available information.
• D)perceptual perseverance and information overload.

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Definitions:

Portfolio Risk

The degree of uncertainty of returns on a portfolio due to the possibility of changes in the values of the holdings.

Market Risk Premium

The difference between the expected return on a market portfolio and the risk-free rate.

Portfolio Beta

A measure of a portfolio's sensitivity to market movements, indicating its volatility relative to the market.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, typically represented by the yield on government securities like U.S. Treasury bonds.