What Mode of Thinking Occurs When People Are Deeply Involved

question 106

Multiple Choice

What mode of thinking occurs when people are deeply involved in a cohesive in-group and members' strivings for unanimity override their motivation to realistically appraise alternative courses of action?

• A) brainstorming
• B) groupthink
• C) escalation of commitment
• D) group polarization
• E) risk propensity

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Definitions:

Standard Deviation

Standard Deviation quantifies the dispersion of a set of data points around their mean, used in finance to measure the volatility of investment returns.

Optimal Risky Portfolio

An optimal risky portfolio is a collection of financial assets that maximizes expected return for a given level of risk or minimizes risk for a given level of expected return.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables on a scatter plot.

Correlation Coefficient

A statistical measure that calculates the strength of the relationship between the relative movements of two variables.