Sam,an Avid Day Trader,has Noticed That a Particular Stock Has

question 46

Multiple Choice

Sam,an avid day trader,has noticed that a particular stock has increased in value in each of the last three trading days.Given this trend,he believes the stock price will increase over the next two trading days.This is an example of

• A)a timing decision.
• B)irrational exuberance.
• C)representativeness.
• D)conservatism.
• E)arbitrage.

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Definitions:

Job Skills Test

An examination designed to measure a person's abilities and competencies in a specific role or profession.

Polygraph Testing

A lie detector test that measures physiological responses to questions to determine the truthfulness of answers.

Job Sample Simulation

A testing method used in employee selection that involves giving the candidate a task or set of tasks to perform that are representative of the actual job.

Structured Interview

An interviewing technique where all participants are asked the same set of predetermined questions for consistency and comparability of responses.