In Terms of Rating Agencies Such as S&P, Investment Grade

question 14

True/False

In terms of rating agencies such as S&P, investment grade companies are those whose bond ratings are grade B or above.

Understand the mechanisms of self-serving bias and how it influences attribution.

Comprehend the principles of cognitive dissonance and its effects on attitudes and behaviors.

Recognize the role of social comparison in self-evaluation.

Apply Festinger's social comparison theory to understand self-knowledge.

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Definitions:

Dominant Strategy

A strategy in game theory that yields the best outcome for a player, regardless of what the other players do.

Payoff

The gain or loss that an investor or a player in a game receives as a result of a particular action or decision.

Nash Equilibrium

A concept in game theory where no player can benefit by changing their strategy if the strategies of the other players remain unchanged.

Payoff

The return or reward from an investment or decision, often evaluated in terms of profit or benefit gained.