Polarization Theory Makes Predictions Opposite That of Risky Shift Theory

question 15

Multiple Choice

Polarization theory makes predictions opposite that of risky shift theory when

• A)the average of members' prediscussion judgments is close to the cautious pole.
• B)diffusion of responsibility is controlled.
• C)diffusion of responsibility is not controlled.
• D)the average of members' prediscussion judgments falls at the midpoint of the continuum.
• E)the average of members' prediscussion judgments is close to the risky pole.

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Definitions:

Asset Allocation Strategy

The process of dividing investments among different kinds of asset classes to optimize risk and reward according to an individual's or institution's objectives and risk tolerance.

Equities

Shares or stocks representing an ownership interest in corporations, providing a claim to part of the firm's assets and profits.

Global Investments

Investing in assets or securities from around the world to diversify investment portfolios and manage risk.

U.S. Investments

Financial investments made within the United States, encompassing a wide range of asset classes, including stocks, bonds, and real estate.