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After Ruth and Mike Had Paid in Advance for Their

question 42

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After Ruth and Mike had paid in advance for their week's stay at a Vermont Inn,Ruth felt that they might have chosen poorly and that they were committing themselves to stay at a place they might hate.Then Ruth got a letter from the Inn's owner stating that she was looking forward to their visit and asking what they most enjoyed for breakfast.The hospitality of the letter dealt with Ruth's cognitive dissonance by:


Definitions:

Rate of Return

The upward or downward movement in the value of an investment across a chosen timeframe, expressed as a percentage of the investment's initial investment.

Margin

Describes securities purchased with money borrowed from a broker. Current maximum allowed margin on stock purchases is 50%.

Sell the Stock

An action where an investor disposes of their ownership in a corporation through the sale of its shares.

Maintenance Margin

The minimum equity amount that must be maintained in a margin account after a purchase has been made, to cover the risk of the investment.

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