Which of the Following Statements Is Most True

question 16

Multiple Choice

Which of the following statements is most true

• A)Punishment is more effective than positive reinforcement in changing behavior.
• B)Punishment creates longer-lasting changes in behavior than does positive reinforcement.
• C)Punishment may create negative, adversarial relationships.
• D)Punishment is rarely effective in changing behavior

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Definitions:

Risk Premium

The additional return expected from an investment for taking on a higher level of risk.

Holding Period

Refers to the duration of time an investment is held by an investor, impacting the tax treatment of any capital gains.

Reward-to-volatility Ratio

A measure used to determine the amount of return an investment provides relative to its risk, with higher ratios indicating better performance per unit of risk.

Capital Allocation Line

A graphical representation in finance showing risk-versus-return profiles of different portfolios, emphasizing the efficient diversification of assets.