The Fact That We Develop Phobias to Stimuli That Have

question 163

Short Answer

The fact that we develop phobias to stimuli that have some intrinsic association with danger supports the idea of ____________ preparedness.

---

Definitions:

Modigliani M2

A measure of the risk-adjusted return of a financial portfolio, modified by Franco Modigliani for different levels of risk.

Rank Portfolios

The process of organizing investment portfolios in order of performance, risk, or any other relevant criteria.

Sharpe Measure

A metric to assess the performance of an investment by adjusting for its risk, calculating the difference between the returns of the investment and the risk-free rate, divided by the investment's standard deviation.

Passive Strategy

An investment strategy that aims to match, rather than outperform, market returns by mimicking the investment holdings of a particular index.