_________ Has to Do with the Speed with Which New

question 13

Multiple Choice

_________ has to do with the speed with which new information is reflected in the market prices for investments.

• A)Leverage
• B)Modern portfolio theory
• C)Dollar-cost averaging
• D)Market efficiency

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Definitions:

Stimulus Discrimination

The ability of an individual to differentiate between similar stimuli and respond appropriately to each, often used in marketing to distinguish a brand from its competitors.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time, leading to alteration in one of the attitudes, beliefs, or behaviors to reduce the discomfort.

Selective Retention

The tendency of individuals to remember more information that is personally meaningful to them while forgetting irrelevant information.

Stimulus Generalization

The psychological principle that occurs when a response to a specific stimulus is elicited by similar stimuli, applied in marketing to create a familiar response through similar branding.