Norms Refer to

question 48

Multiple Choice

Norms refer to

• A)standards by which people define what is desirable or undesirable,acceptable or unacceptable.
• B)culturally defined rules that outline appropriate behaviours for a society's members.
• C)informal rules that do not inspire severe moral condemnation.
• D)something that is formalized under the law.

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Definitions:

Expected Return

The weighted average of all possible returns for an investment, with weights being the probabilities of each outcome.

Standard Deviation

A statistical measure of the dispersion of returns for a given security or market index, indicating how much returns can deviate from the average return.

Correlation

A statistical measure indicating the degree to which two variables' movements are associated with each other, ranging from -1 (perfect negative correlation) to 1 (perfect positive correlation).

Time Diversification

An investment strategy that spreads exposure across different periods to reduce risk associated with market volatility.