The Prevention of Change, by Ignoring Minor Variations and Maintaining

question 29

Multiple Choice

The prevention of change, by ignoring minor variations and maintaining a normal range rather than a fixed value, is characteristic of

• A) positive feedback.
• B) stimulus reinforcement.
• C) negative feedback.
• D) effector control.
• E) both positive and negative feedback loops.

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Definitions:

Geometric Average Return

The average rate of return on an investment per year, compounded annually, representing the compounded growth rate over time.

Yearly Return

The annual profit or loss generated by an investment, usually expressed as a percentage of the investment's initial value.

Information Ratio Measure

A performance metric used to evaluate the skill of an investment manager by comparing their returns relative to the risk taken.

Residual Standard Deviations

A measure of the amount of variance in a set of data points that is not explained by the predictive variables in a regression model.