The So-Called Panic Button Effect Refers to the Tendency for People

question 41

Multiple Choice

The so-called panic button effect refers to the tendency for people ____.

• A) to experience automatic, intrusive thoughts about a goal when pursuit of that goal has been interrupted
• B) to perceive negative things that happen to them as more stressful or painful than negative things that happen to other people
• C) to feel relatively less stress or suffering when they think that they have the option of escaping from a situation
• D) to give greater weight to potential losses than to potential gains, panicking when the losses become unacceptable

---

Definitions:

Risk-Free Return

The theoretical return on an investment with zero risk of financial loss, typically associated with government bonds.

Time-Weighted Return

A method to measure the rate of return of an investment portfolio which eliminates the distorting effects of inflows and outflows of money.

Dividend

Dividend represents the distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Share

A unit of ownership in a company or financial asset, often traded on a stock exchange.