When You See a Classmate in Class or at a Study

question 162

Multiple Choice

When you see a classmate in class or at a study session, he is always very friendly towards you. However, when you run into him at an upscale party, he acts as if he does not know you. Since you know he is a friendly person, what are you most likely to attribute his behavior to?

• A)a fundamental error
• B)a stereotype
• C)the situation
• D)a disposition

---

Definitions:

Stock Returns

The gain or loss made on a stock, including dividends, over a specific period, expressed as a percentage of the investment's initial cost.

Efficient Market

A market hypothesis that states all available information is fully reflected in asset prices, implying that stocks always trade at their fair value, making it impossible to beat the market through expert stock selection or market timing.

Risk-Adjusted Returns

A measure of the return on an investment relative to the risk of that investment, often used to assess the performance of investment managers.

Large Firms

Companies with a significant market capitalization, often leading in their respective industries and markets due to their size and influence.