Intuition Should NOT Be Used in Organizational Decision Making

question 47

True/False

Intuition should NOT be used in organizational decision making.

Grasp the fundamentals of the Capital Asset Pricing Model (CAPM) and the Security Market Line (SML).

Understand how the coefficient of variation is used to compare investment risks.

Recognize the role of the risk-free rate, market return, and beta in determining an investment's expected return.

Understand how changes in stock prices are influenced by investor expectations and market equilibrium dynamics.

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Definitions:

Mental Events

Internal occurrences in the mind, such as thoughts, feelings, and perceptions, that can influence behavior.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually triggers a conditioned response.

Reflexively

In a manner that is automatic or without conscious thought, often as a direct response to a stimulus.

Secondary Reinforcer

A stimulus that has become reinforcing through its association with a primary reinforcer, often used in behavioral conditioning.