How Does Cognitive Dissonance Explain a Husband Beating Up His

question 45

Multiple Choice

How does cognitive dissonance explain a husband beating up his wife while he still sees himself as a decent human being?

• A) It cannot explain these evil acts, which are punishable by law.
• B) It explains that the husband learned this violence from his dad.
• C) He convinces himself that his wife deserved the beating from her evil actions.
• D) He knows when stress builds in his life, something has to give.

Understand the risk-return relationship as defined by modern financial theories.

Recognize the role of macroeconomic factors in asset pricing (via multifactor models).

Understand the concept and process of constructing zero-investment portfolios for arbitrage.

Differentiate between the CAPM and APT in terms of assumptions and applications.

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Definitions:

Long-Lived Assets

These are tangible or intangible assets that a company expects to use for more than one year, including property, plant, and equipment.

Economic Benefits

The gains derived from actions or decisions, typically measured in terms of revenue or income generated or costs saved.

Service Potential

The capacity or capability of an asset, especially a non-financial asset, to provide services or benefits over its useful life.

Capitalization of Interest

The process of adding accumulated interest to the principal balance of a loan, which then earns further interest.