In a Research Study, One-Third of the Subjects Were Injected

question 577

Multiple Choice

In a research study, one-third of the subjects were injected with adrenaline, one-third were given a tranquilizer, and one-third were injected with a placebo (salt water) . They were then shown a comedy film. The group injected with adrenaline laughed the most, the group given the tranquilizer laughed the least, with the placebo group falling between the two other groups. Which theory explains that the participants who received adrenaline had a stirred-up body, but no explanation for what they were feeling. Consequently, they became happy when the movie implied that their adrenaline arousal was due to amusement?

• A)Schachter's cognitive theory
• B)the Cannon-Bard theory
• C)the James-Lange theory
• D)the common sense theory

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Definitions:

Negative NPV

A situation where the present value of future cash flows of an investment is less than the initial investment cost, indicating a potential loss.

Project Risk

The potential for loss or failure associated with an investment or business initiative.

Dividend Growth Model

A valuation method used to estimate the price of a company's stock by using predicted dividends and discounting them back to present value.

SML Approach

Refers to the Security Market Line approach, a graphical representation in the Capital Asset Pricing Model (CAPM) that depicts the relationship between risk and expected return for all securities.