If Bill Used a Mental or Problem-Solving Shortcut to Make

question 74

Multiple Choice

If Bill used a mental or problem-solving shortcut to make a purchase decision, he would be utilizing a(n) :

• A) importance weight.
• B) script.
• C) strategy.
• D) heuristic.

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Definitions:

Standard Deviation

A statistical index that measures how much data values deviate from each other within a dataset.

Beta Coefficient

A measure of a stock's volatility in relation to the overall market; a higher beta indicates greater volatility.

Portfolio

A range of investments held by a person or organization, diversified across asset classes, instruments, or sectors, to manage risk and return.

CAPM

Capital Asset Pricing Model; a model that describes the relationship between systematic risk and expected return for assets, particularly stocks.