Prashanth Is Participating in a Psychology Experiment in Which He

question 38

Multiple Choice

Prashanth is participating in a psychology experiment in which he is asked to gradually shrink the image of a square on his computer screen until he can see that it is smaller than a second square on the screen.Prashanth is trying to create a _____ in order to allow measurement of a _____.

• A) just noticeable difference; absolute threshold
• B) psychophysical difference; absolute threshold
• C) just noticeable difference; difference threshold
• D) psychophysical difference; difference threshold

---

Definitions:

Super-Normal Voting Rights

Voting rights that are greater than one vote per share, typically granted to certain class of shares to retain control in a company.

Preemptive Right

The right of existing shareholders to purchase additional shares in a company before the company offers them to the public, to maintain their proportionate ownership in the company.

After-Tax Yield

The profitability of an investment after all taxes have been deducted, providing a true picture of the investment's return.

Required Return

The minimum rate of return that an investor expects to receive from an investment, accounting for risk preferences and inflation expectations.