"Everyone Has Intrusive and Unwanted Thoughts

question 187

Multiple Choice

"Everyone has intrusive and unwanted thoughts. Most people ignore them. But some people blame themselves and expect terrible consequences, so they act in ways they hope will neutralize the thoughts." The type of theorist who be MOST likely to agree with this position would be a:

• A) psychodynamic theorist.
• B) sociocultural theorist.
• C) cognitive-behavioral theorist.
• D) biological theorist.

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Definitions:

Fairly Priced

A term indicating that an asset's selling price is considered to be in line with its intrinsic value.

Homogeneous Expectations

An assumption in finance that all investors have the same expectations regarding the future rates of return, volatilities, and correlations of securities.

Economic View

A perspective or analysis based on economic indicators, trends, and policies to understand or predict economic outcomes.

CAPM

The Capital Asset Pricing Model, a theory that describes the relationship between the risk of an investment and its expected return.