Marco Is an Athlete and Plays Three Different Types of Sports

question 59

Multiple Choice

Marco is an athlete and plays three different types of sports. When he sees Emma in a track suit, he assumes that she is an athlete as well. The reason this happens is that Marco's schema is

• A) accessible because of his experience with sports.
• B) primed by seeing Emma in the track suit.
• C) accessible because getting her number is his immediate goal.
• D) is primed by the representativeness heuristic.

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Definitions:

Dividend Growth Model

A method for valuing a stock by using predicted dividends and discounting them back to present value.

Preferred Dividends

Dividends that are paid out to preferred shareholders at a fixed rate before any dividends are paid to common shareholders.