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Based on the appraisal theory of emotion, stress arises when a person evaluates a situation as personally relevant and perceives that s/he does not have the resources to cope or handle the specific situation.
This sentence needs explanation: What is the appraisal theory? What does "personally relevant" mean? How would someone evaluate a situation as "personally relevant"? It seems that this could be explained much more directly, perhaps by saying that social stress arises from a perceived threat or source of discomfort, in relation to other people, that a person feels unable to cope with.