Why Do We Overemphasize Dispositional Causes and Underemphasize Situational Causes

question 111

Multiple Choice

Why do we overemphasize dispositional causes and underemphasize situational causes when we explain the behaviour of other people?

• A) We always want to appear moreternally driven than others.
• B) We succumb to the false consensus effect.
• C) We assume a consistency other people's behaviour
• D) It allows us to shift blame to other people.

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Definitions:

Callable Bonds

Bonds that can be redeemed by the issuer prior to their maturity date at a predetermined call price.

Required Rate Of Return

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Reinvestment Rate Risk

Reinvestment Rate Risk is the risk that the returns from reinvesting cash flows will be lower than initially anticipated due to changes in interest rates.

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The total amount of interest paid on a bond or loan over the course of a year.