Because of Differences in the Expected Returns on Different Investments

question 16

True/False

Because of differences in the expected returns on different investments, the standard deviation is not always an adequate measure of risk.However, the coefficient of variation adjusts for differences in expected returns and thus allows investors to make better comparisons of investments' stand-alone risk.

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Definitions:

Negative Reinforcement

A behavioral principle where the removal of an unpleasant stimulus following a behavior increases the likelihood of that behavior being repeated in the future.

Nagging

The act of persistently annoying or finding fault in someone, often to prompt an action or change.

Aversive Conditioning

A method of behavior conditioning in which an undesirable behavior is paired with an aversive stimulus to reduce the behavior's occurrence.

Target Response

The desired behavior or outcome that is aimed for in a psychological experiment or behavioral intervention.