If the Abnormal Return for a Stock During the First

question 12

Multiple Choice

If the abnormal return for a stock during the first week is +5% and during the second week is +3%, what is the abnormal return for the two-week period?

• A) 5%
• B) 3%
• C) 8.15%
• D) None of the above

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Definitions:

Habituation

The process by which an organism decreases or stops its responses to a repetitive stimulus that neither rewards nor harms.

Risk Avoidance Theory

A concept in decision-making and psychology that describes the tendency to avoid situations or actions that could lead to negative outcomes.

Sensitization

Sensitization is the increased response to a stimulus following its repeated exposure, leading to an escalated response to subsequent exposures.

B State

Refers to a theoretical physiological state that an organism is in, affecting its learning and behavior; often not a scientifically established term.