Which One of the Following Is the Tendency to Believe

question 67

Multiple Choice

Which one of the following is the tendency to believe that random events that occur in clusters are not really random?

• A)clustering illusion
• B)sequential clustering
• C)random grouping
• D)representativeness heuristic
• E)gambler's fallacy

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Definitions:

Mutual Fund

A type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities, which is managed by an investment company with the capital pooled from many investors.

Rate of Total Return

A measure of the gain or loss on an investment over a specified period, including interest, capital gains, dividends, and distributions realized over the period.

Rental Income

Income received from leasing out property or other real estate assets.

Property Taxes

Taxes paid by property owners based on the assessed value of their real estate, usually levied by local governments.