When We Place Someone in a Rigid Category and Then

question 22

Multiple Choice

When we place someone in a rigid category and then interpret all their behaviour from the framework of that category,what perceptual process are we using?

• A) imposing consistency
• B) stereotyping
• C) focusing on the negative
• D) oversimplifying

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Definitions:

Required Return

The lowest yearly percent return on an investment necessary to attract individual or corporate investors to a specific security or project.

Constant-Growth Formula

A formula used to estimate the value of a stock by assuming constant growth in dividends.

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.

Plowback Ratio

The proportion of earnings retained by a company after dividends have been paid out, indicating the level of reinvestment in the business.