Why Has It Been So Difficult to Develop the Ideal

question 78

Multiple Choice

Why has it been so difficult to develop the ideal system for classifying mental disorders?

• A) treatments tend to be different for different disorders.
• B) clinical psychologists tend not to use diagnostic systems for classification purposes.
• C) it was easier to conduct scientific research in the past than it is now.
• D) it is difficult to determine which aspects of behaviour are most important.
• E) psychologists find it difficult to conduct structured interviews with patients.

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Definitions:

Unique Risk

Another term for diversifiable risk, emphasizing the idea that this risk is specific to an individual investment and not the market as a whole.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.

Capital Allocation Line

A line on a graph that shows the rates of return of portfolios that optimally combine risk and return for an investor.

Risk-averse Investors

Individuals who prefer lower returns with known risks rather than higher returns with unknown risks.