Which of the Following Is True of Perception

question 61

Multiple Choice

Which of the following is true of perception?

• A) Perceptual processes primarily involve withholding, ignoring, or distorting information.
• B) Perception is subjective because people's self-interested motives and attitudes toward the sender and the message bias their interpretations.
• C) Communication becomes ineffective when people incorporate others' perspectives into their interpretation of issues.
• D) The human tendencies to perceive subjectively underlie much of the effective communication.
• E) As a result of perception, it can be assumed that the other person exactly means what a receiver thinks he or she means.

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Definitions:

Stephen Ross

An influential economist and finance professor known for his work in developing the Arbitrage Pricing Theory and other significant contributions to finance.

Security Market Line

A graphical representation of the expected return of investments as a function of their risk, depicting the relationship between the risk and the expected return of the market.

Fairly Priced

A term indicating that an asset's selling price is considered to be in line with its intrinsic value.

Homogeneous Expectations

An assumption in finance that all investors have the same expectations regarding the future rates of return, volatilities, and correlations of securities.