Sebastian Believes His Neighbour Is Watching Him and Waiting for the Chance

question 158

Multiple Choice

Sebastian believes his neighbour is watching him and waiting for the chance to steal his stamp collection. What type of delusion is Sebastian exhibiting?

• A) Thought broadcasting delusion
• B) Delusion of reference
• C) Persecutory delusion
• D) Grandiose delusion

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Definitions:

Cost of Equity

The return that investors expect for investing in a company's equity, reflecting the risk compared to the risk-free rate of return.

Beta

Beta is a measure of the volatility, or systematic risk, of a security or a portfolio compared to the market as a whole.

Market Risk

The risk of losses in investments due to market-wide phenomena, affecting all investments across the board.

CAPM Approach

A financial model used to determine the expected return on an investment, considering its risk relative to the market using the Capital Asset Pricing Model.