Suppose You Own Two Stocks,A and B

question 74

Multiple Choice

Suppose you own two stocks,A and B.In year 1,stock A earns a 2% return and stock B earns a 9% return.In year 2,stock A earns an 18% return and stock B earns an 11% return.__________ has the higher arithmetic average return.

• A)Stock A
• B)Stock B
• C)The two stocks have the same arithmetic average return
• D)At least three periods are needed to calculate the arithmetic average return
• E)None of the above

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Definitions:

Classical Conditioning

A training approach involving the regular pairing of two cues, where a response originally provoked by the second cue becomes triggered by only the first cue over time.

Instrumental Learning

A learning process that uses rewards and punishments to promote or discourage a behavior, also known as operant conditioning.

Observational Learning

A learning process where an individual acquires new behaviors by watching and imitating others.

Habituation

the process by which an organism decreases or ceases its response to a stimulus after repeated or prolonged exposure.