In Estimating the Cost of Equity, the Rate of Return

question 142

True/False

In estimating the cost of equity, the rate of return on U.S.Treasury bills is often used as a proxy for the risk free rate of return.

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Definitions:

Self-Consistency Dissonance

The discomfort experienced when one's actions are not consistent with one's self-concept, leading to cognitive dissonance.

Cognitive Dissonance

The discomfort in one's mind occurring when holding multiple opposing beliefs, ideas, or values concurrently.

Cognitive Dissonance

The discomfort in one's mind caused by holding multiple opposing beliefs, ideas, or values concurrently.

Social Psychological Theory

A branch of psychological theory that explores how individual behavior is influenced by the social environment and interactions.