A Potential Problem with Public Opinion Polls Is That Respondents

question 23

Multiple Choice

A potential problem with public opinion polls is that respondents may give an answer that they think is politically correct or socially polite, rather than what they really believe. This tendency is known as:

• A) The forked tongue phenomenon
• B) The Pinocchio effect
• C) A Janus-faced response
• D) Social desirability bias
• E) Double-dealing

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Definitions:

Business-Specific Risk

Refers to the uncertainties faced by a company due to the industry it operates in or the nature of its business operations.

Security Market Line

A representation in financial markets that shows the relationship between risk (as measured by beta) and the expected return of a portfolio or individual security.

Stock Market Equilibrium

A situation where the supply of stocks for sale is equal to the demand, and hence the market price is stable.

Required Rates of Return

The minimum annual percentage earned by an investment that will persuade the individual or company to invest.