Arrange the following concepts in the correct sequence that illustrates how prejudice can lead to racism: A) Formation of stereotypes, B) Discriminatory behavior, C) Prejudice, D) Institutional racism.

To understand how prejudice can lead to racism, we start with the formation of stereotypes. Stereotypes are oversimplified ideas about groups of people, and they can create a negative view of others. This negative view is what we call prejudice, which is an unfair feeling or attitude toward a person based on their group identity. When prejudice is acted upon, it results in discriminatory behavior, where individuals treat others unfairly because of their stereotypes. Finally, when these discriminatory actions are supported by laws or institutions, it creates institutional racism, which further reinforces the cycle of prejudice and discrimination in society.