Edison Noticed That Prices at a New Video Game Rental

question 357

Multiple Choice

Edison noticed that prices at a new video game rental website were lower than those at most of the other gaming websites or retail stores such as Game Stop. He is exhibiting

• A) cognitive dissonance.
• B) selective retention.
• C) selective comprehension.
• D) stimulus discrimination.
• E) stimulus generalization.

---

Definitions:

Market Risk Premium

The additional return expected by investors for taking on the higher risk of investing in the stock market over a risk-free investment.

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, typically represented by the yield on government bonds.

Constant Rate

A steady, unchanging value or percentage used in financial calculations, such as a fixed interest rate over time.

Required Return

The minimum expected return on an investment necessary for an investor to consider it worthwhile, taking into account the risk involved.