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Lamont's Therapist Helps Him Construct a List of Fear-Producing Situations

question 174

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Lamont's therapist helps him construct a list of fear-producing situations involving heights.His therapist then teaches Lamont exercises that produce deep relaxation.Once Lamont is relaxed,he attempts the first time on the list,which is "standing on a chair." The first item is repeated until Lamont feels no anxiety.He then proceeds to the second item "climbing a small stepladder." During the next six weeks,this procedure continues until Lamont performs the last item of "flying in an airplane." Lamont and his therapist are using


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Market Portfolio

A theoretical bundle of investments that includes every type of asset available in the market, with each asset weighted according to its total market value.

Beta

A measure of a security's volatility in relation to the market, indicating its relative riskiness.

Arbitrage Pricing Theory

A theory that describes how the price of assets or securities is determined through the relationship to several risk factors or theoretical market indices.

Stephen Ross

An influential economist and finance professor known for his work in developing the Arbitrage Pricing Theory and other significant contributions to finance.

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