You Are Asked to Estimate the Work Productivity of an Employee.If

question 11

Multiple Choice

You are asked to estimate the work productivity of an employee.If you under or overestimated their productivity as a result of using your own level of productivity as a starting point,this would illustrate _____________.

• A) the use of the availability heuristic
• B) a self-fulfilling prophecy
• C) the use of the representativeness heuristic
• D) the use of the anchoring and adjustment heuristic

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Definitions:

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, typically represented by government bonds.

Market Risk Premium

The surplus earnings expected by investors for possessing a market portfolio with risks as opposed to secure, riskless assets.

CAPM

Capital Asset Pricing Model, a formula that describes the relationship between the expected return of an investment and its risk.

Marginal Cost

The cost incurred by producing one additional unit of a product or service, critical for pricing and production decisions.