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You Locate a Vending Machine and Deposit Your Last Bit

question 380

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You locate a vending machine and deposit your last bit of change to buy a candy bar.Then you press the button, and nothing happens.You press the other buttons, try the coin return, and look for an attendant.Still nothing happens.Impulsively, you give the machine a little kick, and out pops a candy bar plus 75 cents.Because your kick produced food and money, the odds of repeating the "kicking response" increase.This situation illustrates


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Fundamentals

Basic principles or underlying factors that form the foundation or base of any subject or discipline.

Overconfidence

Overestimating an individual’s prospects or abilities.

Investor

refers to an individual or entity that allocates capital with the expectation of receiving financial returns.

Risk

The exposure to uncertainty or the potential for financial loss and variability in investment returns.

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