What Is the Major Advantage of Processing Information Automatically

question 68

Multiple Choice

What is the major advantage of processing information automatically?

• A)Automatic processing is more easily remembered than controlled processing.
• B)Automatic processing is more easily modified than controlled processing.
• C)It is easier to learn how to process information automatically.
• D)We can use our cognitive resources for other more important matters.
• E)Automatic processing yields more accurate judgments than does controlled processing.

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Definitions:

Investments

Assets or items acquired with the goal of generating income or appreciating in value.

Markets

Platforms or venues where buyers and sellers meet to exchange goods, services, or financial instruments, determining prices through supply and demand.

Risk-Adjusted

A method or measurement that normalizes the performance of an investment by taking into account the amount of risk involved in producing its returns.

Mutual Fund Performance Measures

Metrics used to evaluate and compare the performance of mutual funds, including measures of risk, return, and the adjustment of performance for risk.