Shares in a Company Are Perfectly Correlated with the Market

question 12

Multiple Choice

Shares in a company are perfectly correlated with the market return. The risk free rate of return is 5 per cent and the risk premium is 6 per cent. What is the expected return?

• A) 30%
• B) 11%
• C) 1%
• D) 1.2%

Understand the concept of associative strength and factors affecting it.

Explain the impact of cue salience and preexposure effects on conditioning.

Analyze the role of attention in the conditioning process and its influence on learned behaviors.

Understand the basic principles and models explaining classical conditioning, including Rescorla-Wagner model, AESOP model, stimulus-substitution theory, and sometimes-opponent-process theory.

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Definitions:

Disjunctive

Pertaining to a logical relation involving a choice between two clauses where at least one must be true.

Either Or

A logical proposition or choice implying that one out of two possible options must be selected or is true, excluding simultaneous truth or selection of both.

Disjunctive Conclusion

A logical inference which results from a disjunction in which at least one of the stated alternatives must be true.

Argument

A series of statements structured to establish a position and persuade an audience, consisting of premises leading logically to a conclusion.