The Risk Associated with a Stock or a Bond That

question 33

Multiple Choice

The risk associated with a stock or a bond that is not correlated with events in the market is known as:

• A) interest rate risk
• B) model risk
• C) currency risk
• D) specific risk

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Conditioned Response

A learned response to a previously neutral stimulus after it has been repeatedly associated with an unconditioned stimulus.

Classical Conditioning

A training technique in which two stimuli are paired repeatedly; the response initially caused by the second stimulus becomes triggered by the first stimulus after some time.

Conditioned Response

A learned response to a previously neutral stimulus after it has been repeatedly paired with an unconditioned stimulus.