One Factor That Contributed to the Decline of Moral Therapy

question 17

Multiple Choice

One factor that contributed to the decline of moral therapy was:

• A) it did not work for everyone.
• B) it was shown to be completely ineffective.
• C) too few patients were hospitalized.
• D) psychogenic drugs replaced it.

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Definitions:

Market Risk Premium

The supplementary income expected by investors when they choose to invest in a volatile market portfolio rather than in secure, riskless options.

Risk-Free Rate

The return on investment with zero risk, typically represented by yields on government securities.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates the stock is more volatile than the market.

Unsystematic Risk

The type of risk that is specific to a company or industry, which can be minimized through diversification.