Although Susan Was Only Peripherally Involved in Getting Her Friend

question 22

Multiple Choice

Although Susan was only peripherally involved in getting her friend elected as the president of the senior class, she felt her friend could never have won without her support. Susan's feeling is best thought of as an example of:

• A) egocentric bias
• B) fundamental attribution error
• C) hindsight bias
• D) actor-observer bias

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Definitions:

Dividend Yield

A ratio indicating the annual dividends a firm pays out compared to its stock price.

Return on Equity

A measure of financial performance that calculates the amount of net income returned as a percentage of shareholders' equity.

Net Profit Margin

A financial metric that shows the percentage of profit a company generates from its total revenue, indicating profitability efficiency.

Gross Margin Percentage

A financial ratio that indicates the percentage of revenue that exceeds the cost of goods sold (COGS), a measure of profitability.