The Equilibrium Risk-Return Curve for a Risk-Neutral Individual Will Be

question 78

Multiple Choice

The equilibrium risk-return curve for a risk-neutral individual will be

• A)horizontal.
• B)a 45-degree line.
• C)positively sloped.
• D)vertical.
• E)negatively sloped.

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Definitions:

Classical Conditioning

An instructive method involving the repeated pairing of two stimuli; a response, initially elicited by the second stimulus, is in time elicited by the first stimulus independently.

Operant Conditioning

A method of learning where behavior alteration occurs through the application of incentives or consequences.

Associate

To connect or link in one's mind, often referring to the process of forming mental connections between ideas, objects, or experiences.

Law Of Effect

A psychological principle stating that behaviors followed by satisfying consequences are more likely to be repeated, while those followed by unpleasant consequences are less likely to be repeated.