Name the Two Main Types of Self-Serving Lies

question 54

Short Answer

Name the two main types of self-serving lies.

Calculate and interpret holding-period returns on investments.

Understand the concept and calculation of expected returns and their standard deviation.

Differentiate between nominal, real, and inflation rates and calculate real rate of return.

Understand and apply the concept of risk premiums.

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Definitions:

Egocentrism

The incapacity to distinguish one's own viewpoint from that of another person.

Hypothetical Thinking

The cognitive process involved in formulating and considering imaginary or "what if" scenarios, not restrained by current reality.

Deductive Reasoning

The practice of deriving a conclusion from the unification of multiple assertions believed to be true.

Trial-And-Error

A problem-solving method involving repeated, varied attempts which continue until success, or until the agent stops trying.