Self-Confidence That Is Easily Punctured by Criticism Is Most Indicative

question 62

Multiple Choice

Self-confidence that is easily punctured by criticism is most indicative of

• A) an external locus of control.
• B) the false consensus effect.
• C) defensive self-esteem.
• D) the Barnum effect.

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Definitions:

Financial Risk

The possibility of losing money on an investment or business venture, usually due to changes in market conditions or poor financial management.

Levered Firms

Companies that use debt in addition to equity in their capital structure.

Unlevered Firms

Companies that operate without the use of borrowed money or financial leverage.

M&M Proposition II

A theory proposing that the cost of equity for a leveraged firm increases linearly with its level of debt, holding the cost of debt constant.