After Writing an Exam, Yani Told Everybody That He Did

question 254

Multiple Choice

After writing an exam, Yani told everybody that he did not study very hard and spent the weekend partying and playing video games.However, when the exam grades were posted the following week, Yani told everybody that he never studied so hard for an exam in his life and he described himself as brilliant.What is this an example of?

• A)The fundamental attribution error
• B)The actor-observer effect
• C)The self-serving bias
• D)Perceptual defence
• E)Contrast effects

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Definitions:

Costs of Equity

The return that shareholders require for investing in a company's equity, effectively the cost to the company of raising equity capital.

After Tax Debt

The net cost of debt after accounting for the tax deductibility of interest expenses.

Portfolio Beta

Portfolio Beta measures the sensitivity of a portfolio's returns to the returns of the market as a whole, serving as an indicator of its risk relative to the market.

Capital Gains Yield

The price appreciation component of the total return on an investment, excluding any dividends or interest.