The Tendency to Pay Attention to Messages Consistent with One's

question 347

Multiple Choice

The tendency to pay attention to messages consistent with one's attitudes and beliefs and to ignore messages that are inconsistent with them is referred to as

• A) selective retention.
• B) selective comprehension.
• C) selective exposure.
• D) selective perception.
• E) stimulus discrimination.

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Definitions:

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, commonly considered the yield of government bonds like T-bills.

Expected Market Rate

The average rate of return anticipated by market participants, based on forecasts and historical trends.

Expected Rate of Return

The anticipated amount of profit or loss an investment generates, expressed as a percentage of the initial investment amount.