Nolan Has Learned to Drink a Cup of Coffee Whenever

question 229

Multiple Choice

Nolan has learned to drink a cup of coffee whenever he gets a tension headache because drinking coffee makes the pain of the headache go away. This is an example of ​

• A)avoidance learning.
• B)escape learning.
• C)positive reinforcement. ​
• D)classical conditioning. ​

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Definitions:

Risky Asset

An asset whose returns can vary considerably and are not predictable, presenting a higher chance of loss.

Risk-free Asset

An investment that is assumed to have no risk of financial loss, typically represented by government bonds.

Beta

A measure of a stock's volatility in relation to the stock market as a whole, indicating the risk associated with investing in a particular stock.

CAPM

The Capital Asset Pricing Model, a formula that describes the relationship between systematic risk and expected return for assets, particularly stocks.