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The authors investigated the role of homosexual arousal in exclusively heterosexual men who admitted negative affect toward homosexual individuals... The men were exposed to sexually explicit erotic stimuli consisting of heterosexual, male homosexual, and lesbian videotapes, and changes in penile circumference were monitored. They also completed an Aggression Questionnaire... Both groups exhibited increases in penile circumference to the heterosexual and female homosexual videos. Only the homophobic men showed an increase in penile erection to male homosexual stimuli. The groups did not differ in aggression.
Homophobia is apparently associated with homosexual arousal that the homophobic individual is either unaware of or denies.
Source: Is homophobia associated with homosexual arousal? Adams, Wrigh, Lohr 1996, Journal of Abnormal Psychology