If You Think That You Are Great,then You Tend to Think

question 59

Multiple Choice

If you think that you are great,then you tend to think that your group is also great and groups that you do not belong to are not very good.This pride in,and preference for,your own group over others is a natural extension of:

• A)social identity theory.
• B)realistic conflict theory.
• C)self-serving bias.
• D)ethnocentrism.

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Definitions:

Coupon Rate

The rate of interest a bond pays annually, expressed as a percentage of its nominal value.

Dividend Growth Rate

The annualized percentage rate of growth of a company’s dividend payout, indicating the stability and growth prospects of the company to investors.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income levels, types of income, and other factors.

Cost of Equity

Represents the compensation the market requires to own equity in a company, reflecting the risk perceived by investors in holding that company's stocks.