Use the Equation for the Question(s)below

question 23

Multiple Choice

Use the equation for the question(s) below.Consider the following factor specification:
E[Rs] - rf = (E[RMkt] - rf) + E[RSMB] + E[RHML] + E[RPR1 YR]
-The term measures the sensitivity of the securities' returns to:

• A)book-to-market.
• B)momentum.
• C)size.
• D)the overall market.

---

Definitions:

Operant Conditioning

A learning process where the consequences of a behavior affect the likelihood of that behavior occurring again.

UCR

Unconditioned Response, which is an automatic, natural reaction to a stimulus in classical conditioning theory.

UCS

Unconditioned Stimulus, an aspect of classical conditioning theory, referring to a stimulus that naturally triggers a reflexive or involuntary response without prior learning.

CS

Stands for Conditioned Stimulus in classical conditioning; a neutral stimulus that, after being repeatedly paired with an unconditioned stimulus, becomes able to elicit a conditioned response.