DeBondt and Thaler (1990) Argue That the P/E Effect Can

question 14

Multiple Choice

DeBondt and Thaler (1990) argue that the P/E effect can be explained by

• A) forecasting errors.
• B) earnings expectations that are too extreme.
• C) earnings expectations that are not extreme enough.
• D) regret avoidance.
• E) forecasting errors and earnings expectations that are too extreme.

---

Definitions:

Cognitive Triad

A concept in cognitive therapy that describes a pattern of thinking involving negative views about the self, the world, and the future.

Object Relations

A theory in psychoanalysis focusing on the relationships between individuals and the external objects (often other people) that represent significant others in one’s life.

Sociocultural

Pertaining to the combination of social and cultural factors that influence an individual's behavior and experiences.

Theoretical Orientation

A foundational perspective or set of principles that guides a therapist's approach to understanding and treating psychological issues.