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You expect General Motors (GM) to have a beta of 1.5 over the next year and the beta of Exxon Mobil (XOM) to be 1.9 over the next year. Also, you expect the volatility of General Motors to be 50% and that of Exxon Mobil to be 35% over the next year. Which stock has more systematic risk? Which stock has more total risk?
Attitudinal Change
A shift in an individual's attitude, viewpoint, or stance towards a particular idea, person, or object.
Festinger
Leon Festinger, a psychologist known for the theory of cognitive dissonance, which describes the discomfort felt when one's beliefs are inconsistent with one's behaviors.
Central Route
In the context of persuasion, this refers to a pathway where individuals are influenced by the content and quality of the message, leading to lasting attitude change.
Peripheral Route
A method of persuasion that involves passive agreement without active thinking, typically influenced by external cues such as the speaker's attractiveness or credibility.
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