Sylvia Used to Play with Balloons

question 246

Multiple Choice

Sylvia used to play with balloons. When she tried to blow up a balloon last week, it popped in her face and gave her quite a scare. Now, blowing up a balloon is so scary that Sylvia will not try it. In this example, the pop is a(n) _____ and the balloon is a(n) _____.

• A) conditioned stimulus; unconditioned stimulus
• B) unconditioned stimulus; conditioned stimulus
• C) unconditioned response; conditioned response
• D) conditioned response, ; unconditioned response

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Definitions:

Well-Diversified Portfolios

Investment portfolios that are spread across various assets to minimize exposure to any single asset or risk.

Arbitrage Opportunities

Situations in which it is possible to simultaneously buy and sell an asset or assets to profit from a difference in prices across different markets or formats without risk.

Expected Excess Return

The return on an investment over the risk-free rate of return that is anticipated based on risk assessment.