12-51 If Bank A's Average Return on Its Loan Portfolio

question 33

Multiple Choice

12-51 If Bank A's average return on its loan portfolio is lower than that of Bank B's,

• A)its risk-adjusted return is higher than Bank B's.
• B)its risk-adjusted return is lower than Bank B's.
• C)its standard deviation is lower than Bank B's.
• D)its standard deviation is higher than Bank B's.
• E)Answers b and d

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Definitions:

Extinction Contrast Effect

The increased difference in the intensity or frequency of a response observed when a previously reinforced behavior is no longer reinforced, in the presence of a contrasting condition that continues to be reinforced.

Tokens

Symbols or objects used as representations of value or exchange, often employed in token economies for behavior reinforcement.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, operant conditioning involves an association between behaviors and their consequences.

Reinforcement

In behaviorism, any event that strengthens or increases the likelihood of a behavior.