Assume a Portfolio Has the Possibility of Returning 7 Percent,8

question 47

Multiple Choice

Assume a portfolio has the possibility of returning 7 percent,8 percent,10 percent or 12 percent with a likelihood of 20 percent,30 percent 25 percent and 25 percent respectively.Considering the portfolio's standard deviation and expected value would you say that this portfolio is of

• A)Average yield,low risk
• B)Lower than average yield,low risk
• C)Average yield,average risk
• D)Not enough information to tell

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Definitions:

Counterconditioning

A behavior therapy technique that involves teaching the client to replace a negative response to a stimulus with a positive response.

Behavioral Contrast

The phenomenon where the rate of response varies according to a change in reinforcement conditions for one of two or more behaviors.

Sensory Preconditioning

A learning process where two neutral stimuli are paired together before one of them is paired with an unconditioned stimulus, affecting response to the second stimulus.

Conditioned Stimulus

A previously neutral stimulus that, after being associated with an unconditioned stimulus, triggers a conditioned response.