Style Investing Involves Constructing Portfolios in Such a Way as to Capture

question 45

True/False

Style investing involves constructing portfolios in such a way as to capture one or more of the characteristics of equity securities.

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Definitions:

Primary Reinforcers

Innate rewarding stimuli that fulfill basic biological needs or desires, such as food, water, and comfort, which do not require learning to be effective.

Shaping

A method of behavior training in which reinforcement is given for progressively closer approximations of the desired behavior.

Ratio Schedule

In behavior modification, a reinforcement schedule that provides rewards after a certain number of responses, encouraging consistent behavior.

Interval Schedule

A type of reinforcement schedule in operant conditioning that delivers a reward after a variable or fixed interval of time has passed.