"You're Asking Me If I've Heard Anything About Who Might

question 25

Multiple Choice

"You're asking me if I've heard anything about who might be breaking into all those cars in the neighborhood? I hear a lot, and one thing I can tell you is that people are mad as hell about that new stop sign." Which logical fallacy best describes this faulty reasoning?

• A) false dilemma
• B) faulty analogy
• C) red herring
• D) appeal to a lack of evidence

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Definitions:

Risky Asset

An investment that carries a significant possibility of losing some or all of its original value.

Delta

In finance, delta refers to the ratio that compares the change in the price of an asset, usually a derivative, to the corresponding change in the price of its underlying asset.

Risky Investment

An investment that carries a higher probability of losing money, alongside the possibility of yielding high returns.