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Exhibit 9.2
Use the Information Below for the Following Problem(S)
Consider the three stocks, stock X, stock Y and stock Z, that have the following factor loadings (or factor betas) .
The zero-beta return (??) = 3%, and the risk premia are ?? = 10%, ?? = 8%. Assume that all three stocks are currently priced at $50.
-Refer to Exhibit 9.2.Assume that you wish to create a portfolio with no net wealth invested.The portfolio that achieves this has 50% in stock X,-100% in stock Y,and 50% in stock Z.The weighted exposure to risk factor 1 for stocks X,Y,and Z are
Contingency Management
Contingency Management is a behavior modification technique where desired behaviors are reinforced through tangible rewards or the removal of negative consequences.
Counterconditioning
A behavior therapy technique where a maladaptive response is replaced with a more desirable one by associating the feared stimulus with a new, positive response.
Stimulus Control
A behavior modification technique that involves changing the environment to manage the stimuli that trigger undesirable behaviors, thereby reducing or eliminating those behaviors.
Stimulation
Any activity that arouses or excites a bodily function or mental process, potentially leading to enhanced functioning or perception.
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