Which of the Following Statements Is True

question 92

Multiple Choice

Which of the following statements is true?

• A) Leverage increases expected return and increases risk.
• B) Leverage increases expected return and reduces risk.
• C) Leverage decreases expected return but has no effect on risk.
• D) Leverage decreases expected return and increases risk.

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Definitions:

Differential Reinforcement

A behavior modification technique that reinforces desired behaviors while withholding reinforcement for undesired behaviors.

Differential Reinforcement

The process of reinforcing specific behaviors while not reinforcing other behaviors, used to increase desired behaviors and decrease undesired ones.

DRL

Differential Reinforcement of Low Rates, a behavior modification technique used to encourage low rates of behaviors by providing reinforcement only if the behavior occurs at or below a prescribed rate.

DRO

Differential Reinforcement of Other behavior; a strategy where reinforcement is provided for any behavior that is not the undesired target behavior.