The Phonological Loop and the Visuospatial Sketchpad Are

question 314

Multiple Choice

The phonological loop and the visuospatial sketchpad are:

• A) different names for auditory sensory memory and visual sensory memory.
• B) two of the three components in psychologist Alan Baddeley's model of working memory.
• C) two mnemonic devices that can be used to help you remember a list of unrelated items, such as nonsense syllables.
• D) two components in psychologist George Sperling's model of sensory memory.

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Definitions:

Risk Aversion

The tendency of investors to avoid unnecessary risk, preferring safer investments over riskier ones for the same expected return.

Capital Asset Pricing

A model that describes the relationship between the expected return of an investment and the risk, or beta, relative to the market.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be mitigated through diversification.

Security Market Line

A representation in financial markets of the relationship between risk and expected return, used in the Capital Asset Pricing Model.