When an Assumption or Belief Keeps Us from Considering the Evidence

question 108

Essay

When an assumption or belief keeps us from considering the evidence fairly,or causes us to ignore the evidence completely,it becomes a bias.Often a bias remains hidden until someone changes our belief and we get defensive.Describe how the 1998 book by Judith Rich Harris (The Nurture Assumption)questioned prevailing assumptions.

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Definitions:

Finance

The management of large amounts of money, especially by governments or large companies, including the processes of investing, borrowing, lending, budgeting, saving, and forecasting.

Stocks and Bonds

Financial instruments that represent ownership in a company (stocks) and debt obligations (bonds), respectively, offering different levels of risk and potential returns.

Cash Flows

The aggregate sum of funds flowing in and out of a company, significantly influencing its ability to meet short-term obligations.

Expected Cash Flows

The anticipated stream of cash payments or receipts over a given period, used in evaluating investments or business projects.