It Is Easier for Individual Investors to Diversify Their Risk

question 22

True/False

It is easier for individual investors to diversify their risk by buying shares in different firms than for the firms to combine their operations.

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Definitions:

Variable-Interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, in the context of behavioral psychology.

Operant Responding

Operant responding involves a type of learning where behavior is modified by its consequences, through reinforcement or punishment, initially described by B.F. Skinner.

Unpredictable

not able to be predicted or foreseen, often because of constant changes or lacking a pattern.

Variable-Interval

A timetable for reinforcement where the time intervals between receiving reinforcement vary around a certain average but are unpredictable.