Use the Following to Answer Questions

question 12

Multiple Choice

Use the following to answer questions
Scenario I
Scenario I is based on and presents fabricated data consistent with the following study:
Merikle,P.M. ,& Skanes,H.E.(1992) .Subliminal self-help audiotapes: A search for placebo effects.Journal of Applied Psychology,77(5) ,772-776.doi:10.1037/0021-9010.77.5.772
Merikle and Skanes (1992) investigated the effectiveness of subliminal self-help audiotapes to promote weight loss in overweight females seeking to lose weight.Participants were randomly assigned to groups.Participants in two groups were instructed to listen to audiotapes containing subliminal messages associated with weight loss daily.Group 1 (the subliminal group) actually received these tapes.Group 2 (the placebo group) received tapes containing subliminal messages associated with relieving dental anxiety.Finally,a third group of participants was not given audiotapes and was told that they were on a waiting list to participate in the study.All participants-including the participants on the waiting list-were weighed weekly for 5 weeks.The average total weight loss (and standard deviations) for the three groups after the fifth week is presented in Figure 5.1.
Figure 5.1
-(Scenario I) What were the independent and dependent variables in this study?

• A)The independent variable was weight loss;the dependent variable was audiotape type (subliminal,placebo,none).
• B)The independent variable was how often participants were weighed;the dependent variable was weight loss.
• C)The independent variable was audiotape type (subliminal,placebo,none);the dependent variable was weight loss.
• D)The independent variable was weight loss;the dependent variable was how often participants were weighed.

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Definitions:

Risk Aversion

The inclination of investors to avoid risk, preferring safer investments over those with higher potential for gains but also greater risk.

Total Risk

The complete scope of uncertainty or variability in returns on an investment, including both systematic and unsystematic risk factors.

Security Market Line

A representation in finance that shows the relationship between risk (as measured by beta) and expected return of investments, used in the capital asset pricing model.

Capital Market Line

A line used in the capital asset pricing model to depict the rates of return for efficient portfolios depending on the risk-free rate of return and the level of risk (standard deviation) for a particular portfolio.