When the Saleswoman Doesn't Reply to His "Hello," Mario Concludes

question 126

Multiple Choice

When the saleswoman doesn't reply to his "hello," Mario concludes that she is simply a cold person. Yet the next day when Mario doesn't reply to the saleswoman who greets him, he realizes that he is just having a bad day. These differing attributional tendencies illustrate

• A) the fundamental attribution error.
• B) the actor-observer effect.
• C) counterfactual thinking.
• D) the false-consensus effect.

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Definitions:

Beta

An indication of how much a stock's price fluctuates compared to the broader market.

Portfolio Returns

The overall gains or losses generated by a portfolio of investments over a specific period, assessing the effectiveness of investment choices.

Systematic Risk

Refers to the risk inherent to the entire market or market segment, which cannot be mitigated through diversification.

Diversification

The process of allocating investments across various financial assets to reduce the risk exposure of a portfolio.