A Firm Can Change Its Beta Through Managerial Decisions, Including

question 92

True/False

A firm can change its beta through managerial decisions, including capital budgeting and capital structure decisions.

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Definitions:

Contingency Contract

A contract format commonly used in behavioral economics and psychology, specifying the delivery of rewards or consequences contingent on the performance of the desired behavior.

Behavioral Change

Refers to the process of transforming or modifying human behaviors, often aimed at adopting more desirable or healthful habits, through various psychological and intervention strategies.

Reinforcements

In behaviorism, any event that strengthens or increases the likelihood of a behavior being repeated, which can be positive (adding a desirable stimulus) or negative (removing an aversive stimulus).

Extinction

In behavioral psychology, a process by which a conditioned response decreases or disappears as a result of repeated exposure to the conditioned stimulus without the unconditioned stimulus.