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During the Most Recent Drop in Stock Prices, Homer Took

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During the most recent drop in stock prices, Homer took the opportunity to buy a wide variety of stocks even though many of his friends and relatives were selling. Homer's investment strategy appears to be consistent with contrarian views.


Definitions:

Systematic Desensitization

A therapeutic technique used to reduce fear or anxiety, by gradually exposing the person to the feared object or context without any danger.

Exposure

A therapeutic technique where individuals confront their fears or traumatic memories in a safe and controlled environment to reduce their power.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior.

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