Shares with a Beta of 1

question 68

True/False

Shares with a beta of 1.0 would on average earn the risk-free rate.

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Definitions:

Dispositional Cause

Cause of behavior attributed to internal factors such as personality or character.

Situational Cause

Cause of behavior attributed to external factors, such as delays, the action of others, or some other aspect of the situation.

Fundamental Attribution Error

The tendency to attribute others' actions to their character or personality, while attributing our own behaviors to external situational factors.

Internal Attributions

The process of inferring that personal factors, rather than external factors, are the cause of an event or behavior, suggesting that a person’s actions are due to their individual characteristics such as personality or effort.