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Your Professor Is Passing Back Exams, and as You Are

question 28

True/False

Your professor is passing back exams, and as you are waiting to receive your exam, you notice that the student sitting next to you has a big, red "F" at the top of her exam. You think, "Wow, this must have been a really difficult exam." Your thinking illustrates the fundamental attribution error.


Definitions:

Ex-Dividend

A stock trading term that denotes the timing of dividend payments – if you purchase a stock on its ex-dividend date or after, you will not receive the next dividend payment.

Declared Dividend

A portion of a company's earnings announced to be paid to shareholders on a specified date.

Homemade Dividend Policy

A strategy where investors create their own dividend stream by selling a portion of their portfolio of equities.

Dividend Policy

Refers to the approach or guidelines a company follows in deciding the amount and timing of dividend payments to its shareholders.

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