While Globalization Encourages Security Markets in Different Countries Move Together

question 78

Multiple Choice

While globalization encourages security markets in different countries move together, _________ will be realized from international diversification.

• A) Greater returns
• B) Smaller advantage
• C) Larger risk
• D) Bigger advantage
• E) None of the above

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Definitions:

CS Preexposure Effect

The phenomenon where prior exposure to a conditioned stimulus without the unconditioned stimulus can inhibit the formation of a conditioned response when both are later paired.

Aversion

A strong dislike or disinclination toward something often because of anticipated negative consequences or outcomes.

Shock

A sudden and often distressing stimulus or event, which can be used in experiments as a form of aversive conditioning.

Comparator Model

A cognitive theory suggesting that the decision to act is based on comparisons between the expected outcome of an action and the current state.