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Every Time Alice Cleans Her Room Properly and Makes the Bed

question 129

Multiple Choice

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?


Definitions:

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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