Behaviorists Generally Believe That

question 41

Multiple Choice

Behaviorists generally believe that

• A) it is possible to generalize from the laboratory to real life.
• B) one cannot generalize from rats to humans.
• C) both (a) and (b).
• D) neither (a) nor (b).

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Definitions:

Beta of the Portfolio

An assessment of a portfolio's volatility or inherent risk, relative to the overall market.

Required Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put their money into it.

Risk-free Rate

The return on an investment with zero risk; typically represented by the yield on government bonds.

Risk Characteristics

Features that define the vulnerability of an investment's return, including volatility, market risk, and credit risk.