It Is Possible That Before Eyewitnesses Came Forward to Identify

question 43

Multiple Choice

It is possible that before eyewitnesses came forward to identify Randall Adams as the man who murdered a police officer, they had seen his face on television or in the newspaper. Because they saw Adams in the media, they might have come to believe that he was the man they saw on the road where the murder occurred. This is an example of __________.

• A) own-race bias
• B) source monitoring errors
• C) the power of schemas to bias attention
• D) racial misidentification

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Definitions:

Unsystematic Risk

The risk associated with a specific issuer of a security or investment, which can be mitigated through diversification.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single investment's performance.

Portfolio Theory

A framework for constructing a portfolio of assets in such a way that it optimizes the balance between risk and return.

Risk Aversion

The reluctance to take on investments with higher levels of uncertainty or potential for loss.