Which of the Following Is Not Likely to Be an Action

question 34

Multiple Choice

Which of the following is not likely to be an action that an individual will take due to perceived inequity?

• A) Decreasing his or her level of input
• B) Leaving the situation
• C) Making an appeal to increase the reward level
• D) Being more cooperative

---

Definitions:

Considerable Leverage

The use of borrowed capital to increase the potential return of an investment.

Survivorship Bias

Bias in the average returns of a sample of funds induced by excluding past returns on funds that left the sample because they happened to be unsuccessful.

Self-Selection Bias

Refers to the bias introduced into research results when individuals select themselves into a group, causing a non-random sample.

Statistical Arbitrage

Use of quantitative systems to uncover many perceived misalignments in relative pricing and ensure profit by diversifying across all of these small bets.