An Advantage of the Probabilistic Approach to Estimating an Asset's

question 55

Multiple Choice

An advantage of the probabilistic approach to estimating an asset's returns is:

• A) history always repeats itself.
• B) it does not require one to assume that the future will look like the past.
• C) recent history is more important than future risk.
• D) exact probabilities are easy to estimate.

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Definitions:

Affective

Relating to moods, feelings, and attitudes, often used in psychology and marketing to describe emotional responses.

Reinforcement

In marketing, it refers to strategies aimed at encouraging the repetition of a desired consumer behavior.

Stimulus

A detectable change in the internal or external environment that can elicit or evoke a physiological response from an organism.

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and impacts on the consumer and society.