Jason and Mark Were Talking in Class, but So Was

question 47

Multiple Choice

Jason and Mark were talking in class, but so was everyone else. As they continued to discuss their day's adventures, it suddenly became clear to them that the teacher was staring at them. They didn't realize that the class had been called to order and what was once only one conversation among many was now disruptive. Jason apologized quickly, and the teacher resumed her normal activities. This is a good example of how a consumer's ability to detect a difference between two stimuli is ________.

• A) absolute
• B) negligible
• C) relative
• D) embedded

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Definitions:

Index Model

A financial model that relates a stock's returns to the returns of a broader market index, used to estimate the stock's beta and expected returns.

Standard Deviation

A measure of the dispersion or variability of a set of values, widely used in finance to assess the risk associated with a particular investment.

Index Model

A statistical model used to predict stock prices by relating the returns of each stock to the returns of an overall market index.

Standard Deviation

A measure of the dispersion of a set of data from its mean, indicating how spread out the data points are.