If You Were to Use the Standard Deviation as a Measure

question 127

Multiple Choice

If you were to use the standard deviation as a measure of investment risk,which of the following has historically been the highest risk investment?

• A) common stock of large firms
• B) U.S. Treasury bills
• C) common stock of small firms
• D) long-term government bonds

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Definitions:

Punishment

A process in behavioral psychology intended to reduce undesired behaviors by applying negative consequences.

Conditioned Stimulus

A neutral stimulus that, through its connection with an unconditioned stimulus, eventually induces a conditioned response.

Loud Noise

A type of environmental stimulus characterized by high amplitude sound waves, which can potentially cause hearing damage or stress.

Unconditioned Response

Is an automatic, natural reaction to a stimulus that occurs without prior conditioning or learning, such as salivating in response to food.