Which of the Following Terms Refers to a Situation in Which

question 18

Multiple Choice

Which of the following terms refers to a situation in which a person inaccurately perceives another person and the resulting expectations cause the other person to behave in ways consistent with the original perception?

• A) confirmation bias
• B) self-fulfilling prophecy
• C) attribution theory
• D) contrast effect
• E) bandwagon effect

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Definitions:

Gains And Losses

The increase or decrease in an investment's value, respectively, often realized upon selling or valuing the investment at market price.

DAX-30 Index Futures

Futures contracts that speculate on the future value of the DAX, a stock index of 30 major German companies trading on the Frankfurt Stock Exchange.

Underpriced

A term describing a security or other asset that is selling for a price considered to be below its intrinsic or true value.

Arbitrage Profit

The profit made from buying and selling identical assets in different markets or formats to take advantage of differing prices for the same asset.