According to the CAPM,the Expected Return on a Risky Asset

question 1

Essay

According to the CAPM,the expected return on a risky asset depends on three components.Describe each component,and explain its role in determining expected return.

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Definitions:

External-Reinforcement Schedule

This involves the regulation of behavior based on rewards or punishments administered from an outside source, used in various behavioral conditioning frameworks.

Positive Punishment

Adding an undesirable stimulus to decrease a behavior.

Negative Punishment

A behavior modification technique involving the removal of a desirable stimulus to decrease the probability of an undesirable behavior being repeated.

Negative Reinforcement

A process that strengthens a behavior by removing or reducing an undesirable outcome when the behavior is performed.