Suppose an Investor Can Earn a Steady 5% Annually with Investment

question 68

True/False

Suppose an investor can earn a steady 5% annually with investment A,while investment B will yield a constant 12% annually.Within 11 years' time,the compounded value of investment B will be more than twice the compounded value of investment A (ignore risk).

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Definitions:

Mackintosh's Attentional Theory

A theory proposing that the allocation of attention during learning is influenced by the predictability of stimuli, affecting conditioning strength.

Conditioned Response Strength

The intensity or magnitude of a response that has been learned under conditional circumstances.

Conditioning

A process of behavior modification in which a subject learns to respond in a desired manner to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Unconditioned Response Sequences

The natural, automatic reactions that occur in response to an unconditioned stimulus without prior learning or conditioning.