Which of the Following Biases Clouds Our Judgments About Other

question 5

Multiple Choice

Which of the following biases clouds our judgments about other people's behaviors?

• A) Egocentric bias
• B) Fundamental attribution error
• C) Self-referencing bias
• D) Self-serving bias
• E) External attribution bias

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Definitions:

Passive Investment

An investment strategy involving minimal buying and selling actions, typically focused on long-term gains and avoiding frequent trading.

Common Stock

A type of security that represents ownership in a corporation and grants shareholders voting rights and a share in the company's profits through dividends.

Fair Value

The estimated market price of an asset or liability, reflecting the amount for which it could be exchanged or settled between knowledgeable, willing parties in an arm's length transaction.

Trading Securities

Financial securities purchased by a company, not intended for long-term investment but rather for making a profit in the near term from their sale or trade.