Which of the Following Statements Is FALSE

question 21

Multiple Choice

Which of the following statements is FALSE?

• A)In particular,because real options allow a decision maker to choose the most attractive alternative after new information has been learned,the presence of real options adds value to an investment opportunity.
• B)To make an investment decision correctly,the value of embedded real options must be included in the decision-making process.
• C)A key distinction between a real option and a financial option is that real options,and the underlying assets on which they are based,are often traded in competitive markets.
• D)We can compute the value of the real option by comparing the expected profit without the real option to the value with the option.

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Definitions:

Carl Rogers

An influential American psychologist who founded the client-centered or person-centered approach to therapy.

Psychoanalysis

A therapeutic approach and theory developed by Sigmund Freud focusing on unconscious motivations and conflicts influencing behavior.

Active Listening

A communication technique involving fully concentrating, understanding, responding, and then remembering what is being said.

Counterconditioning

A behavioral therapy technique that involves replacing an undesirable response to a stimulus with a more desirable one.