The Fundamental Attribution Error Occurs When People's Incorrect Attributions Cause

question 40

True/False

The fundamental attribution error occurs when people's incorrect attributions cause others to actually behave in ways that confirm these attributions.

---

Definitions:

Required Rate

The minimum rate of return on an investment that investors demand, taking into account the investment’s risk level compared to the risk-free rate of return.

Annual Cash Flows

The total amount of money being transferred into and out of a business, captured on a yearly basis, and used to assess the financial health of the entity.

IRR Cross-Over Rate

The rate of return at which two different investments have the same net present value; used in comparing project alternatives.

Annual Cash Flow

The net amount of cash and cash-equivalents moving into and out of a business in a given fiscal year.