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What Is Likely to Occur in the Testing Phase of a Pavlovian

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What is likely to occur in the testing phase of a Pavlovian instrumental transfer experiment?


Definitions:

Underperformed

Refers to an investment yielding a lower return than other investments or benchmarks.

Momentum

Momentum in finance refers to the tendency of an asset's price to move in the same direction for periods of time, influenced by investors' expectations and market trends.

Conservatism

An accounting principle that errs on the side of caution by recording expenses and liabilities as soon as possible but only recognizing revenues and assets when they are assured.

Overreaction

Refers to an excessive emotional response from investors to new information, causing a security's price to move far more than justified by the fundamentals.

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