If the Risk-Free Rate of Interest (Rf)is 6%,then You Should

question 31

Multiple Choice

If the risk-free rate of interest (rf) is 6%,then you should be indifferent between receiving $250 today or

• A)$235.85 in one year.
• B)$250.00 in one year.
• C)$265.00 in one year.
• D)None of the above

---

Definitions:

Reversal Design

An experimental technique where a behavior is measured before and after a treatment is introduced, and then once again when the treatment is removed.

Intervention

Actions or strategies implemented to produce a change in a situation or in the behavior of individuals, often within educational or therapeutic contexts.

Changing Criterion Design

A method of graphing behavioral observations used to evaluate a slow and orderly increase or decrease in a student’s performance level by changing the criterion for the student to receive an intervention in a stepwise fashion.

Target Criterion

A specific goal or standard of performance that individuals aim to achieve in an intervention, training program, or behavioral experiment.