Suppose That Over the Last 20 Years,company XYZ Has Averaged

question 59

Multiple Choice

Suppose that over the last 20 years,company XYZ has averaged a return of 13%.Over the same period,the Treasury bond rate has averaged 4%.The current estimate of the Treasury bond rate is 6.5%.Using the historical approach,what is the estimate of XYZ's expected return.

• A) 13.0%
• B) 16.5%
• C) 15.5%
• D) 19.5%

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Definitions:

Classical Conditioning

Classical conditioning is a learning process in which an innate response to a potent stimulus becomes triggered by a previously neutral stimulus.

Negative Reinforcement

A process in behavioral psychology where the removal of an undesirable stimulus strengthens a behavior.

Partial Reinforcement

A conditioning schedule in which a reward is not given every time the desired response is made, enhancing resistance to extinction of the behavior.

Successive Approximations

A process in behaviorism where behaviors are broken down into small, achievable steps towards a final goal, often used in learning and conditioning.