Over the Long Run, Investors Should Seek Returns That Are

question 4

Multiple Choice

Over the long run, investors should seek returns that are

• A) higher than inflation.
• B) about equal to inflation.
• C) lower than inflation.
• D) The answer depends on an investor's risk tolerance.

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Definitions:

Classical Conditioning

A teaching mechanism involving the link between a stimulus found in the environment and one that naturally exists.

Positive Reinforcer

A stimulus which, when presented after a behavior, increases the likelihood of that behavior being repeated.

Conditioned Stimulus

A conditioned stimulus is a previously neutral stimulus that, after becoming associated with an unconditioned stimulus, elicits a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers an unconditioned response without prior learning.