Investors Tend to Make Better Decisions When Looking at a Decision

question 3

Multiple Choice

Investors tend to make better decisions when looking at a decision:

• A)based on historical performance.
• B)only in respect to potential losses.
• C)based on individual securities.
• D)in broad terms.
• E)based on historical costs.

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Definitions:

Sensory Memory

Memory system that involves holding information from the world in its original sensory form for only an instant, not much longer than the brief time it is exposed to the visual, auditory, and other senses.

Procedural Memory

Memory for skills.

Long-term Memory

A type of memory capable of storing information for an extended period of time, from hours to a lifetime.

Short-term Memory

The capacity for holding a small amount of information in mind in an active, readily available state for a short period of time.