When Performance Perceptions Are More Positive Than What Was Expected

question 30

True/False

When performance perceptions are more positive than what was expected, positive disconfirmation occurs.

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Definitions:

Real Rate of Interest

The rate of interest an investor expects to receive after adjusting for inflation, indicating the real cost of borrowing.

Nominal Rate

The stated interest rate on a loan or financial instrument, not adjusted for inflation.

Inflation

A general increase in prices and fall in the purchasing value of money.

Present Value

The valuation of an expected income stream determined by discounting the future income to the present using a discount rate.