Which One of the Following Statements Is More Likely to Be

question 19

Multiple Choice

Which one of the following statements is more likely to be correct concerning the comment, "Stock A has a higher expected return than Stock B"?

• A) Stock A has more unique risk.
• B) Stock B plots below the security market line.
• C) Stock B is a cyclical stock.
• D)Stock A has a higher beta.

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has become conditioned through association.

Cat Food

Manufactured food specifically formulated to meet the nutritional needs of domestic cats.

Classical Conditioning

A conditioning method where a response initially triggered by a second stimulus comes to be elicited by the first stimulus alone after repeated pairings of the two stimuli.

CS and US

In classical conditioning, CS stands for Conditioned Stimulus, which is a previously neutral stimulus that, after becoming associated with the unconditioned stimulus (US), eventually comes to trigger a conditioned response.