The Intrinsic Value of a Stock Provides a Purchase Price

question 69

Multiple Choice

The intrinsic value of a stock provides a purchase price for the stock

• A)that is reasonable given the associated level of risk.
• B)which will assuredly yield the anticipated capital gain.
• C)which will guarantee the expected rate of return.
• D)that is always below the market value but yet yields the expected rate of return.

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Definitions:

Positive Reinforcement

A technique used in behavioral psychology to increase the likelihood of a desired behavior by rewarding it.

Stimulus Discrimination

The learned ability to differentiate between similar stimuli and respond appropriately to each.

Stimulus Generalization

The process by which a response that has been learned to one stimulus is elicited by a different, but similar, stimulus.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of rest, without any further conditioning.