If a Person's Required Return Does Not Change When Risk

question 179

Multiple Choice

If a person's required return does not change when risk increases, that person is said to be

• A) risk-seeking.
• B) risk-neutral.
• C) risk-averse.
• D) risk-aware.

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Definitions:

Punishment

A penalty imposed for wrongdoing, intended to discipline or deter undesirable behavior.

Negative Reinforcement

A concept in behaviorism where a response or behavior is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Positive Reinforcement

A technique in behavioral psychology that involves rewarding desirable behaviors to increase their occurrence.

Punishment

constitutes the imposition of a negative consequence or the removal of a positive stimulus in response to undesired behavior, with the aim of reducing that behavior.