As the Risk of a Stock Investment Increases

question 43

Multiple Choice

As the risk of a stock investment increases,

• A) return will increase.
• B) return will decrease.
• C) required rate of return will decrease.
• D) required rate of return will increase.
• E) the beta approaches zero.

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Definitions:

Operant Conditioning

A learning paradigm that tailors the intensity of a conduct through positive feedback or negative repercussions.

Shaping

The process of reinforcing successively closer approximations to a desired behavior, used in behavioral training and conditioning.

Delayed Reinforcement

A technique in behavior modification that involves a time delay between the desired response of an organism and the delivery of reward.

Classical Conditioning

An educational approach where two stimuli are persistently paired; the response, initially the result of the second stimulus, eventually becomes the result of the first stimulus alone.