Examlex

Solved

KLM Royal Dutch Airlines Is Considering an Investment in New

question 95

Multiple Choice

KLM Royal Dutch Airlines is considering an investment in new routes that should bring in significant revenues in the future. Which of the following will KLM most likely evaluate to determine the value of the investment?


Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Representativeness Heuristic

A cognitive bias in which an individual categorizes a situation based on patterns of previous experiences or beliefs about the scenario.

Over-Confidence

A psychological condition where an individual overestimates their knowledge, skill, or importance.

Noise Trader

A trader whose trades are not based on information or meaningful financial analysis.

Related Questions