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According to the Safe-Haven Effect, Investors May Be Willing to Sacrifice

question 166

True/False

According to the safe-haven effect, investors may be willing to sacrifice an amount of return if an economy offers them a low risk repository for their funds.


Definitions:

Nocebos

Refers to a detrimental health effect that results from negative expectations of the patient and is the counterpart to the placebo effect.

Placebo Response

A beneficial health outcome resulting from a person's expectation of treatment rather than from the actual treatment itself.

Expectancy

The anticipation or belief about what is likely to happen in the future.

Conditioning

A process of behavior modification by which a subject comes to associate a desired behavior with a previously unrelated stimulus.

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