When a Neighbor Asks If He Can Borrow Your Chemistry

question 154

Multiple Choice

When a neighbor asks if he can borrow your chemistry textbook and you do him this favor,dissonance theory would predict that you will like him more due to the Ben Franklin effect,which works because

• A)you only do favors for people you initially like.
• B)you share an interest in and love for chemistry.
• C)you have to internally justify doing this favor.
• D)you find external justification for doing a favor.

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Definitions:

Inflation Adjusted Risk

Refers to the danger of losing purchasing power of an investment due to inflation outpacing the returns.

Systematic Risk

The inherent risk of exposure to market changes that cannot be diversified away, affecting all securities in a similar manner.

Portfolio Beta

An evaluation of a portfolio's systemic risk in relation to the entire market's volatility.