If an Individual Makes Her Investment Decisions Based Solely on the Net

question 7

Multiple Choice

If an individual makes her investment decisions based solely on the Net Present Value criterion,one can conclude that she is

• A) risk averse.
• B) risk neutral.
• C) risk loving.
• D) extremely wealthy.

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Definitions:

Behaviorism

A theory of human development that studies observable actions. Behaviorism is also called learning theory, because it describes how people learn to do what they do.

Induction

A disciplinary technique in which the parent tries to get the child to understand why a certain behavior was wrong. Listening, not lecturing, is crucial.

Bullying

A form of aggressive behavior characterized by repeated acts of physical, verbal, or social harm intended to intimidate, harm, or ostracize another individual.

Instrumental

Pertaining to actions or tools designed to achieve a specific purpose or carry out a particular function.