One of Your Friends Scored in the 90s on Her

question 14

Multiple Choice

One of your friends scored in the 90s on her last ten exams. Although she has been studying for this exam and feels prepared, she told you, "I know I'm going to flunk this exam. I've been doing too well on exams." Your friend is committing the error of

• A)illogical reasoning.
• B)theory.
• C)inaccurate observation.
• D)selective observation.
• E)overgeneralization.

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Definitions:

Private Companies

Privately held entities that are owned by individual investors, families, or a small group of shareholders, not available for public trading.

Market Interest Rate

The prevailing rate of interest available in the market for securities of similar risk and maturity.

Effective Interest Rate

The actual return on investment or cost of a loan, taking into account the compounding of interest, as opposed to the nominal rate.

Stated Interest Rate

The annual interest rate declared on a loan or investment, not taking into account compounding or fees.