If You Praise a Child for Learning That the Plural

question 18

Multiple Choice

If you praise a child for learning that the plural of sheep is sheep and the plural of deer is deer and the child cries excitedly, "Look at all the goat!" on seeing a herd of goats, this illustrates the learning theory principle of

• A) extinction.
• B) discrimination.
• C) reinforcement.
• D) generalization.

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Definitions:

Standard Deviation of Returns

A measure of the volatility of the returns on an investment, indicating the typical deviation from the average return.

Specific Risk

Specific risk is a type of risk that affects a very small number of assets, also known as unsystematic risk, and is associated with factors unique to a particular company or industry.

Beta

A metric that measures the volatility of an investment relative to the overall market, indicating its level of risk.

Reinvestment Risk

The risk that future cash flows from an investment will not be reinvested at the same rate as the initial investment, affecting the overall return.