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If We Want to Get Some Idea About a Default

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If we want to get some idea about a default premium over time between two specific assets,we can compare the returns on short-term or medium-term bonds with those on large company stocks.


Definitions:

Sensitization

An increased response to a stimulus following repeated exposures, typically leading to an exaggerated reaction over time.

Behavioral Contrast

A phenomenon in which the rate of a behavior varies inversely with an alteration in the conditions of reinforcement for another behavior.

Higher-order Conditioning

A process in classical conditioning by which a stimulus that has become a conditioned stimulus can be used to condition a new stimulus.

Stimulus Presentations

Stimulus presentations involve the exposure of an individual to a specific stimulus or series of stimuli, often used in psychological experiments to observe responses or behaviors.

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