If Returns on Stock a Are More Volatile Than the Returns

question 59

Multiple Choice

If returns on stock A are more volatile than the returns on stock B, the geometric average return of stock A will be ________ the geometric average return of stock B when their arithmetic average returns are same.

• A) same as
• B) higher than
• C) lower than
• D) always same as

Understand the concept of intermittent reinforcement and its impact on behavior extinction.

Explain the use of conditioned (secondary) reinforcers in complex learning and behavior modification.

Understand the concepts of positive and negative reinforcements and punishments.

Recognize the effects and limitations of using punishment as a behavioral modification strategy.

---

Definitions:

Unemployment

A macroeconomic condition where individuals who are capable of working and are seeking work cannot find employment.

Inflation Rates

The rate expressed in percentage at which the overall price level for goods and services increases, leading to a decline in purchasing power.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power currency over time.

Creditors

Creditors are individuals, businesses, or financial institutions that lend money or extend credit, expecting to be repaid with interest.