If You Gained 20 Percent on $200 Worth of Stock

question 39

Multiple Choice

If you gained 20 percent on $200 worth of stock in a 4x margin account, then you would gain:

• A) $20.
• B) $40.
• C) $100.
• D) $160.

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Definitions:

Status Quo Bias

The preference to maintain current circumstances or resist changes.

Changing

Refers to the process of making something different from what it was before.

Immediate Outcomes

The direct results or effects that occur as a consequence of an action or event.

Omission Bias

The inclination to perceive actions that cause harm as more negative or morally inferior compared to equally damaging failures to act (omissions).