Positive Correlation Is When Asset Returns Are Rising

question 115

True/False

Positive correlation is when asset returns are rising.

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Definitions:

Framing

The way information is presented so as to emphasize either a potential gain or a potential loss as the outcome.

Representativeness Heuristic

is a cognitive shortcut where the likelihood of an object belonging to a category is assessed based on its similarity to a typical case from that category.

Heuristics

Mental shortcuts or rules of thumb that ease the cognitive load of making a decision, often leading to approximation or educated guesses.

Algorithms

Step-by-step procedures or formulas for solving problems or completing tasks.