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Every time Alice cleans her room properly and makes the bed she receives a marble. When she accumulates 100 marbles, she can get the new video game she wants. What type of behavioral program are Alice's parents using?
Risk Premium
The risk premium is the additional return an investor requires for choosing a risky investment over a risk-free asset, compensating for the extra risk undertaken.
Arithmetic Average Return
The simple average of a series of returns generated over a period of time.
Variance
A statistical measurement of the dispersion of returns for a given security or market index, indicating volatility.
Time Horizon
The length of time over which an investment is expected to be held or a financial goal is to be achieved.
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