When You Buy a Stock on Margin,your Return Is Magnified

question 35

True/False

When you buy a stock on margin,your return is magnified if the stock goes up in value.

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Definitions:

Instrumental Theory

denotes a perspective in sociology and psychology suggesting that individuals engage in certain behaviors primarily because of the rewards or outcomes associated with those behaviors.

Reinforcement Theory

A theory that suggests behavior is influenced by reinforcements or consequences, and that behavior can be modified by changing the consequences.

Classical Conditioning

A conditioning concept developed by Russian physiologist Ivan Pavlov that suggests that learning can be accomplished through the use of stimuli.

Reinforcement Theory

A behavioral theory positing that behavior is shaped and maintained by its consequences, such as rewards or punishments.