In Bottom-Up Approach of Fundamental Analysis, Investors Begin Their Analysis

question 303

Multiple Choice

In bottom-up approach of fundamental analysis, investors begin their analysis with:

• A) Industry
• B) Economy
• C) Market
• D) Company

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Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses, while giving disproportionately less consideration to alternative possibilities.

Fundamental Attribution Error

The tendency to overemphasize personal traits and minimize situational factors as causes of other people's behavior.

Internal Attributions

The process of assigning the cause of behavior to internal characteristics, traits, or abilities of the individual.

External Attributions

The process of attributing the cause of one's own or others' behavior to external factors or situational circumstances.