Which of the Following Is the Best Example of Optimistic

question 110

Multiple Choice

Which of the following is the best example of optimistic bias

• A) I received an excellent recommendation from my teacher.
• B) I can sew well enough to make a dress.
• C) I am a better cook than my sister.
• D) I am a better driver than most people.

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Definitions:

D/A

Debt-to-Assets ratio, a financial metric indicating the proportion of a company's assets that are financed by debt.

EBIT

Earnings Before Interest and Taxes; a measure of a firm's profit that includes all incomes and expenses except interest and income tax expenses.

Common Share Price

The market price of a single share of a company's common stock, reflecting the company's valuation, investor sentiment, and market conditions.

WACC

Weighted Average Cost of Capital, a calculation of a firm's capital cost where each category of capital is proportionately weighted.