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Why Is the Thinking Behind the Capital Asset Pricing Model

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Why is the thinking behind the Capital Asset Pricing Model dangerous for small investors?


Definitions:

Continuous Schedule

A plan or system where operations or activities are carried out without interruption or breaks, often requiring a high level of coordination and resources.

Reinforcement Schedule

A plan or rule that determines how often a desired response will be reinforced in behavior modification.

Desired Behaviour

The specific actions or reactions that an organization or individual aims to elicit from others.

Intermittent Schedule

A type of reinforcement schedule in behavioral psychology where rewards or consequences are applied at irregular intervals to shape behavior.

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