According to the Behavior Allocation View,changing from a 1:2 Contingency

question 12

Multiple Choice

According to the behavior allocation view,changing from a 1:2 contingency to a 1:1 or 2:1 contingency has what effect on the desired behavior?

• A)It increases the behavior.
• B)It increases the asymptote of the behavior.
• C)It decreases the behavior.
• D)It has no effect on the behavior.

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Definitions:

Stand-Alone Risk

The risk associated with investing in a stock that’s held by itself, outside of a portfolio. Stand-alone risk depends on the volatility of a stock’s own return rather than on the effect its inclusion has on the volatility of the return of a portfolio.

Business Risk

The potential for loss or failure in the operation of a company, often due to external and internal factors.

Financial Assets

Assets that derive value because of a contractual claim on them, such as stocks, bonds, bank deposits, and other investments.

Non-Financial Assets

Assets that are not in the form of cash or cannot be easily converted to cash, such as property, plant, and equipment.