So Far This Year, Stock a Has Had a Mean

question 93

Multiple Choice

So far this year, stock A has had a mean price of $6.58 per share with a standard deviation of $1.88, while stock B has had a mean price of $10.57 per share with a standard deviation of $3.02. Which stock is more volatile?

• A)Stock A
• B)Stock B
• C)They are the same.

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Definitions:

Burrhus F. Skinner

A prominent American psychologist best known for his work in behaviorism and the development of the theory of operant conditioning.

Operant Conditioning

A learning process in which the strength of a behavior is modified by reinforcement or punishment, a key concept in behavioral psychology.

Classical Conditioning

A learning process in which a biologically potent stimulus is paired with a previously neutral stimulus to elicit a response that was originally elicited only by the potent stimulus.

Defence Mechanisms

Unconscious psychological strategies brought into play by various entities to cope with reality and maintain self-image.