In 1978 Jim Jones, the Leader of the People's Temple

question 29

Multiple Choice

In 1978 Jim Jones, the leader of the People's Temple, forced more than 900 of his followers to commit suicide at gun point by drinking poisoned Flavor Aid. In the run-up to this event, Jones had strictly enforced discipline, mocking and ridiculing anyone who expressed doubts, at times even having doubters sedated. This extreme effort to enforce conformity is an example of:

• A) the expressive self.
• B) the Twenty Statements Test.
• C) bureaucracy.
• D) peer pressure.
• E) an out-group.

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Definitions:

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Security Market Line

A line drawn on a graph that shows the relationship between risk and the expected return of the market, used in the capital asset pricing model to determine a security's risk premium.

APT

Arbitrage Pricing Theory, a multifactor model that describes the relationship between a financial asset's returns and its economic factors.

Market Portfolio

A theoretical bundle of investments that includes all types of assets available in the financial market, with each asset weighted according to its market capitalization.