Which of These Statements Is True

question 88

Multiple Choice

Which of these statements is true?

• A) When people purchase a stock, they know exactly what their dollar and percent return are going to be.
• B) Many people purchase stocks as they find comfort in the certainty for this safe form of investing.
• C) When people purchase a stock, they know the short-term return, but not the long-term return.
• D) When people purchase a stock, they do not know what their return is going to be-either short term or in the long run.

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Definitions:

Terror Management Theory

A theory which says that to minimize fear of mortality, humans strive to sustain faith that they are enduringly valued contributors to a meaningful world and therefore transcend their physical death.

Social Dominance Theory

The theory that large societies create hierarchies and that people tend to endorse beliefs thatlegitimatize that hierarchy.

Mortality

The state of being subject to death; the opposite of immortality.

Higher Entitativity

A perception of a group as being a cohesive and unified entity, based on similarities among its members or the strength of their shared identity.