Use the Table for the Question(s)below

question 27

Multiple Choice

Use the table for the question(s) below.
Consider the following probability distribution of returns for Alpha Corporation:
-Which of the following statements is FALSE?

• A)We measure the degree of estimation error statistically through the standard error of the estimate.
• B)When focusing on the returns of a single security,its common practice to assume that all dividends are immediately invested at the risk-free rate.
• C)We estimate the standard deviation or volatility as the square root of the variance.
• D)We estimate the variance by computing the average squared deviation from the average realized return.

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Definitions:

Taste Aversions

A learned response where an individual develops a dislike or avoidance of a food after a negative experience, such as illness, associated with it.

Operant Conditioning

An instruction technique whereby the power of a conduct is adjusted by positive reinforcement or punitive measures.

Skinner

B.F. Skinner was an influential American psychologist known for his work on behaviorism and developing the theory of operant conditioning.

Thorndike

An American psychologist famous for his work on learning theory and the law of effect, which states that behaviors followed by positive outcomes are likely to recur.