Discuss the Relationship Between Risk and Return

question 101

Essay

Discuss the relationship between risk and return.

---

Definitions:

Edward L. Thorndike

A prominent American psychologist known for his work in behaviorism and the development of the Law of Effect, which suggests that responses to stimuli that are followed by satisfaction are more likely to recur.

Environmental Contingencies

External conditions or situations that affect the outcome of certain behaviors or processes.

Cognitive Maps

The mental representations of physical locations, spaces, or the environment that an individual has.

Animal Learning

The process by which animals acquire new behaviors through interaction with their environment, often studied to understand cognitive processes.