Since Schoolchildren Judge Their Own Talents and Limitations More Realistically

question 5

Multiple Choice

Since schoolchildren judge their own talents and limitations more realistically than preschoolers, _____.

• A) they should decide which reading and math groups they wish to join
• B) their self-esteem may suffer as they compare themselves with others
• C) following a failure, they are less pessimistic about future failure
• D) they are less likely to concede that they're not good at something

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Definitions:

Risk Premium

The extra return expected by an investor for holding a risky asset, compared to a risk-free asset.

Corporate Bonds

Debt securities issued by corporations to finance their operations, expansion, or other spending needs, paying fixed or variable interest rates to investors.

Treasury Bills

Treasury Bills are short-term government securities with maturity periods of one year or less, often used by investors as a low-risk investment option.

Inflation

It is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.