Use the Following Information, Which Describes the Expected Return and Standard

question 73

Multiple Choice

Use the following information, which describes the expected return and standard deviation for three different assets, to answer the following question(s) .

-If an investor must choose between investing in either portfolio X or portfolio Y, then [blank].

• A)she will always choose portfolio X over portfolio Y
• B)she will always choose portfolio Y over portfolio X
• C)she will be indifferent between investing in portfolio X and portfolio Y
• D)she will always ask for more information before making a decision

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Definitions:

Cognitive Map

A mental representation of the layout of one’s environment. For example, after exploring a maze, rats act as if they have learned a cognitive map of it.

Behavioral Technology

The application of psychological principles and techniques to influence human behavior in practical, real-world settings.

Skinner

A psychologist known for his theory of operant conditioning, emphasizing the role of reinforcement in behavior modification.

Shaping

A method of operant conditioning in which successive approximations of a desired behavior are reinforced until the exact behavior is achieved.