You Are a Hard-Charging Manager Who Doesn't Really Like to Sit

question 31

Multiple Choice

You are a hard-charging manager who doesn't really like to sit at a desk for too long.You prefer to gather information quickly,make a decision,and move on to the next item on your agenda.Which one of the following applies to you?

• A)availability bias
• B)arbitrage limits
• C)law of small numbers
• D)representativeness heuristic
• E)regret aversion

---

Definitions:

Total Market Value

The aggregate valuation of a company or asset in the marketplace, calculated by multiplying price by quantity of shares.

Improved Liquidity

Refers to an increase in the ease with which assets can be converted into cash without a significant loss in value.

Stock's Expected Price

An estimate of the future price of a stock based on earnings forecasts, market trends, and other factors.

Target Capital Structure

The optimal mix of debt, equity, and other sources of financing that a company aims to achieve for minimizing cost of capital and maximizing value.