The Term "Emotion" Refers To

question 3

Multiple Choice

The term "emotion" refers to:

• A)a major process in development
• B)the mental manipulation of knowledge
• C)a subjective experience accompanied by a physiological and expressive reaction
• D)the set of factors that initiate and direct behavior, usually toward some goal

---

Definitions:

Over-Optimism

A bias where individuals or companies have excessively positive expectations about future events or outcomes.

Confirmation Bias

The inclination to seek out, comprehend, prefer, and remember information that validates one’s already held beliefs or theories.

Regret Aversion

A behavioral finance concept describing an individual's tendency to make decisions that minimize the potential for future regret.

Frame Dependence

A concept in behavioral finance where investors' decisions are influenced by the way information is presented to them, rather than just the information itself.