You Are Watching Jeopardy with Your Brother and Notice That

question 94

Multiple Choice

You are watching Jeopardy with your brother and notice that he seems remarkable intelligent. After Alex Trebeck reads each answer, your brother states, "yep, I knew that". However, when you decide to mute the television during the reading of your answers, your brother has a very difficult time producing the correct answer. Your brother's initial response that he knew the correct answer after he heard it is an example of

• A) belief perseverance
• B) retroactive interference
• C) hindsight bias
• D) memory reconstruction

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Definitions:

Small Investors

Individuals who commit capital to investments in smaller amounts compared to institutional investors, often with less access to sophisticated tools and information.

Par Value

The face value of a bond or the stated value of a stock, not necessarily its market value.

Common Stock

Equity security representing ownership in a corporation, providing voting rights and a share in profits through dividends.

Paid in Excess

Funds received by a company over and above the par value of its stock, often recorded as additional paid-in capital on the balance sheet.