The Tendency to Engage in Belief Perseverance Can Be Reduced

question 78

Multiple Choice

The tendency to engage in belief perseverance can be reduced or eliminated by ____.

• A)attempting to make one's behaviors and attitudes more consistent
• B)making an effort to persuade others of one's beliefs
• C)coming up with personal examples to support one's beliefs
• D)coming up with counterarguments (i.e., arguments for "the other side")

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Definitions:

CAPM

Stands for Capital Asset Pricing Model, a formula used to determine the expected return on an investment based on its risk relative to the market.

Multifactor Model

An investment model that evaluates securities by considering multiple economic factors to predict their risk and return.

Security Returns

The profit or loss generated on an investment over a particular period, typically expressed as a percentage.

Risk-Adjusted Returns

Investment returns which have been modified to account for the risk involved, providing a more accurate measure of performance.