The Halo Effect and Similar-To-Me Effects Are Considered Examples of Which

question 31

Multiple Choice

The halo effect and similar-to-me effects are considered examples of which type of rating error?

• A)trait system
• B)contrast
• C)illegal discrimination
• D)bias

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Definitions:

Total Assets

The sum of all resources owned by an individual, corporation, or country, including both current and noncurrent assets.

U.S. Households

Refers to living arrangements or economic units in the United States consisting of one or more people who occupy a housing unit.

Informational Efficiency

A characteristic of financial markets where all relevant information is quickly and accurately reflected in security prices, allowing for fair and efficient trading.

Active Trading

The buying and selling of securities with the intent of profiting from short-term price movements.