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Diversification Allows You to Reduce Risk, but Still Provides Consistently

question 48

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Diversification allows you to reduce risk, but still provides consistently high returns.


Definitions:

Immediate Reinforcement

The provision of a reward directly following a desired behavior to strengthen its occurrence.

Fixed-interval Schedule

A reinforcement schedule where a reward is given for the first response after a predetermined time period has passed.

Conditioned Reinforcers

Stimuli that acquire their reinforcing power through association with primary reinforcers, playing a role in shaping behavior.

Primary Reinforcers

Basic needs or stimuli such as food, water, or warmth that are naturally rewarding and motivate behavior without learning.

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