Your Friend Claims to Have ESP (Extrasensory Perception)

question 21

Multiple Choice

Your friend claims to have ESP (extrasensory perception) . Based on research from your text, if you were to think of an image and ask your friend to guess that image, what would you expect his success rate to be?

• A) Nearly perfect - individuals who posses ESP have routinely been able to read other people's minds.
• B) Close to zero - even with ESP it is difficult to read someone's mind.
• C) Around chance level - individuals with ESP are simply guessing.
• D) It is difficult to predict the success rate based on current research.

---

Definitions:

Short-Term Investment

An investment expected to be converted into cash, sold, or exchanged within a short time frame, typically within a year.

Stock Investments

Financial assets consisting of shares in companies, representing ownership and possibly entitling the shareholder to dividends.

Debt Investments

Financial assets involving the loan of money by an investor to a borrower, typically with the expectation of receiving interest income in addition to principle repayment.

Equity Method

An accounting technique used to record investments in other companies, where the investment is accounted for based on the investor’s share of the investee's equity.