Interpreting Information So That It Is Consistent with Your Attitudes

question 160

Multiple Choice

Interpreting information so that it is consistent with your attitudes and beliefs is called:

• A)selective retention.
• B)selective analysis.
• C)selective comprehension.
• D)selective exposure.

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Definitions:

Beta

A metric for assessing the uncertainty, or inherent danger, of an individual security or collective investment compared to the market at large.

Common Stock

Represents equity ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Risk-Free Rate

The hypothesized return rate of a risk-less investment, often exemplified by the yield found in government securities.

Market Risk Premium

The increased earnings expected by an investor for choosing a risky market portfolio over assets with no risk.