While His Exhausted Mother Was Taking a Nap, Four-Year-Old Dennis

question 326

Multiple Choice

While his exhausted mother was taking a nap, four-year-old Dennis decided to help her out by doing the laundry. He dragged a stool over to the washing machine, stuffed clothes into it, turned it on, and dumped a box of detergent on top of the clothes. Which psychologist and which learning theory could best explain Dennis's behavior?

• A) Ivan Pavlov; classical conditioning
• B) Edward Thorndike; the law of effect
• C) Albert Bandura; observational learning
• D) John Garcia; biological preparedness

---

Definitions:

Duration

A financial metric that estimates the weighted average time it takes for an investor to be repaid the bond's cash flows, serving as a measure of interest rate sensitivity.

Promised Yield

The return that a bond issuer agrees to pay to the bondholder until maturity, expressed as an annual percentage.

Coupon Rate

The annual interest rate paid by a bond issuer to the bondholder, usually expressed as a percentage of the bond's face value.

Duration

A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates, often expressed in years.