People Are Motivated to Impose Clear Definitions on Ambiguous Situations

question 209

Multiple Choice

People are motivated to impose clear definitions on ambiguous situations. All of the following processes except ________ are used to resolve ambiguity of information.

• A) schematic processing
• B) making attributions
• C) informational social influence
• D) dissonance reduction

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Definitions:

Systematic Risk

The overall impact of market-wide phenomena on the value of investments, as opposed to risks that are specific to a particular investment.

Nondiversifiable Risk

Also known as systematic risk, it refers to the portion of an investment's risk that cannot be eliminated through diversification, affecting the entire market or economy.

Diversifiable Risk

A type of investment risk that can be reduced through diversification of a portfolio across different assets, sectors, or geographical locations.

Unique Risk

Risk that is specific to an individual asset or company, which can be mitigated through diversification.