How Does the Fundamental Attribution Error (FAE) Differ from the Actor-Observer

question 87

Multiple Choice

How does the fundamental attribution error (FAE) differ from the actor-observer effect (AOE) ?

• A) They make opposite predictions.
• B) They make similar predictions, but the FAE focuses on attributions that we make about others, while the AOE concerns attributions that we make about ourselves.
• C) They make similar predictions, but the FAE focuses on attributions that we make about ourselves, while the AOE concerns attributions that we make about others.
• D) They make similar predictions, but the FAE focuses on attributions that we make about others, while the AOE concerns attributions that we make about others AND attributions that we make about ourselves.

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Definitions:

Investment Horizon

The total length of time that an investor expects to hold a portfolio or a specific investment before selling it.

Liquidation Date

The predetermined date on which an investment or venture is terminated, and all assets are liquidated.

Defined Contribution Pension Plan

A retirement plan where both employer and employee contribute to an individual account for the employee, with benefits depending on investment performance.

Bears All The Risk

A term indicating that one party in a transaction is responsible for any financial losses or risks that may arise, commonly used in insurance and investment contexts.