Which Approach to Psychology Makes Claims That Are Generally the Most

question 30

Multiple Choice

Which approach to psychology makes claims that are generally the most difficult to test or confirm in a scientific manner?

• A) behaviorism
• B) physiological psychology
• C) psychoanalysis
• D) developmental psychology

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Definitions:

Market Risk Premium

The extra return over the risk-free rate that investors require to hold a risky market portfolio.

Beta

A measure of a stock's volatility in relation to the overall market; often used as a gauge of an asset's risk.

Security Market Line

A line that represents the relationship between risk and expected return in financial markets.

Market Risk Premium

The supplementary income expected by an investor from maintaining a risky market portfolio rather than holding risk-free investments.