The Expected Return Is Usually ________ the Baseline Risk-Free Rate

question 66

Multiple Choice

The expected return is usually ________ the baseline risk-free rate of return that we demand to compensate for inflation and the time value of money.

• A) lower than
• B) higher than
• C) similar to
• D) none of the above

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, evokes a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that unconditionally, naturally, and automatically triggers a response without any prior learning.

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without prior learning or conditioning.

Conditioned Response

A response acquired through learning to a stimulus that was initially neutral, but has been paired with an unconditioned stimulus via conditioning.