Which Theory of Emotion Explains That Emotions Occur When Physical

question 213

Multiple Choice

Which theory of emotion explains that emotions occur when physical arousal is labeled or interpreted on the basis of experience and situational cues?

• A)common sense theory
• B)Cannon-Bard theory
• C)James-Lange theory
• D)Schachter's cognitive theory

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Definitions:

Market Risk Premium

The additional return over the risk-free rate that investors require to compensate them for the extra risk of investing in the stock market.

Fairly Priced

A term suggesting an asset is trading at a price close to its intrinsic value, considering its earnings, growth potential, and risk.

Expected Return

The predicted amount of profit or loss an investment generates based on historical or projected performance.

Risk-free Rate

The return on investment of a theoretically risk-less security, often represented by the yield on government bonds.