Table 8.3 Consider the Following Two Securities X and Y

question 162

Multiple Choice

Table 8.3
Consider the following two securities X and Y.
-Which security (X or Y) in Table 8.3 has the least total risk? Which has the least systematic risk?

• A) X; X
• B) X; Y
• C) Y; X
• D) Y; Y

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Definitions:

Inoculation Theory

A psychological theory suggesting that exposure to weakened forms of an argument increases later resistance to that argument, similar to how exposure to a virus can create immunity.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting beliefs, values, or attitudes simultaneously.

Inoculation Theory

A theory suggesting that exposure to a weakened form of an argument strengthens people's ability to refute stronger, future arguments.

Cognitive Dissonance

A psychological state in which an individual experiences discomfort or conflict due to holding contradictory beliefs, attitudes, or values at the same time.