A Hypnotist Is Putting on a Demonstration, and Your Friend

question 80

Multiple Choice

A hypnotist is putting on a demonstration, and your friend Benjamin is thinking about volunteering. However, he is a little nervous because he is afraid he might do things while he is hypnotised that he would normally not do. Based on research into the effects of hypnosis, you should tell Benjamin

• A) people will never do things under hypnosis that they would normally consider unacceptable.
• B) people will often do things under hypnosis that they would normally consider unacceptable.
• C) sometimes people will do things under hypnosis that they would normally consider unacceptable.
• D) hypnosis doesn't really work, so he shouldn't bother volunteering.

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Definitions:

ROE

Return on Equity, a financial ratio that measures the profitability of a business in relation to shareholder’s equity, indicating how well a company uses investments to generate earnings growth.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments.

Constant Growth DDM

A valuation model for stocks that assumes dividends grow at a constant rate in perpetuity, used to calculate the present value of future dividend payments.

Intrinsic Value

The true, inherent, or fundamental value of an asset, based on both tangible and intangible factors, as opposed to its market price.