The Modern Media, and Especially the Internet, Function as a Giant

question 128

Multiple Choice

The modern media, and especially the Internet, function as a giant "echo chamber" awash with rumors, hoaxes, half-truths, and urban legends like the one about giant alligators living in New York sewers. Therefore, as a critical thinker, you should

• A)be skeptical.
• B)be wary of overly complex explanations.
• C)remember that truth is often stranger than fiction.
• D)remember that numerous postings of information on the Internet are required to establish proof.

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Definitions:

Intrinsic Value

An estimate of the true value of an asset, including tangibles and intangibles, based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.

Beta Coefficient

An index of a security's fluctuation in value as compared to the broader market, signifying its relative risk versus the average market risk.

Characteristic Line

In finance, a line that describes the relationship between the returns on a stock and the returns on the market, used in the Capital Asset Pricing Model (CAPM).

Stable Equilibrium

A state in which a system, once disturbed, returns to its original condition because the equilibrium is stable.