Suppose That Because of the Large Need for Steel in Building

question 6

Multiple Choice

Suppose that because of the large need for steel in building railroad infrastructure,Taggart Transcontinental and Rearden Metal decide to form into one large conglomerate.Your estimate of the asset beta for this new conglomerate is closest to:

• A)0.42.
• B)0.59.
• C)0.66.
• D)0.68.

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Definitions:

Conditioned Response

The learned response to the conditioned stimulus that occurs after conditioned stimulus-unconditioned stimulus pairing.

Voluntary Behavior

Actions that are performed consciously and intentionally by an individual, as opposed to reflexes or automatic responses.

Reflex

An automatic, involuntary reaction to a specific stimulus that does not require conscious thought.

Habit

A regular behavior or routine that is repeated often and tends to occur subconsciously.