You Are Offered a Security That Will Pay You $2,500

question 16

Multiple Choice

You are offered a security that will pay you $2,500 at the end of the year forever.If your discount rate is 8%,what is the most you are willing to pay for this security?

• A) $26,686
• B) $62,500
• C) $50,000
• D) $31,250

Understand the concept of self-handicapping and its implications on performance.

Recognize the principle of social categorization and its effects on perception of others.

Identify and explain the operation of belief perseverance in maintaining beliefs despite contradictory evidence.

Understand the fundamental attribution error and its impact on judgment of others' behaviors.

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Definitions:

Intimacy

A close, familiar, and usually affectionate or loving personal relationship with another person or group.

Nonverbal Behavior

Communication without words, which can include gestures, facial expressions, body language, tone of voice, and other physical cues.

Unconscious

The part of the mind that contains thoughts, memories, and desires not within the current awareness of the individual.

Awareness

The state or ability to perceive, feel, or be conscious of events, objects, or sensory patterns.