Which of the Following Attribution Biases Is Correctly Matched with Its

question 58

Multiple Choice

Which of the following attribution biases is correctly matched with its definition?

• A) Halo effect-An initial impression of an individual having some positive traits causing one to infer that the individual has many other positive traits as well
• B) Self-serving bias-Overemphasizing dispositional factors when explaining other people's behavior
• C) Fundamental attribution error-Assuming that other people are similar to oneself, even when meeting them for the first time
• D) Assumed-similarity bias-The tendency to attribute personal success to personal factors (skill, ability, or effort) and to attribute failure to factors outside oneself

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Definitions:

Flotation Costs

Expenses incurred by a company in issuing new securities, including underwriting, legal, registration, and printing fees.

Expected Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling, as anticipated by consumers, investors, and economists.

Cost of Capital

The Cost of Capital is the cost of a company's funds (both debt and equity), or, from an investor's point of view, the required rate of return on a portfolio company's existing securities.

Specific Financing

Financing that is intended for a particular purpose or project, with clear specifications and usually backed by specific collateral.