Regarding the Social Readjustment Rating Scale (SRRS), Which of the Following

question 140

Multiple Choice

Regarding the Social Readjustment Rating Scale (SRRS) , which of the following statements is FALSE?

• A) Since people differ greatly in their reactions to the same event, stress scales like the SRRS at best provide a rough index of stress.
• B) Improvement in life conditions can be as costly as a decline.
• C) There is a high chance of illness or accident when a Life Change Unit (LCU) total is between 150 and 200 points.
• D) In a classic study in which people were deliberately exposed to the cold virus, a person with a high score on the SRRS was much more likely to get a cold.

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Definitions:

Market Values

The current market value at which one can buy or sell a service or asset.

WACC Computation

The calculation of a company's weighted average cost of capital, which combines the cost of equity and cost of debt.

Cost of Debt

The effective rate that a company pays on its borrowed funds from external sources.

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and satisfy its investors and creditors.