Which of the Following Investments Would You Prefer

question 140

Multiple Choice

Which of the following investments would you prefer?

• A) an investment earning 10 percent for 20 years
• B) an investment earning 8.5 percent for 20 years
• C) an investment earning 5 percent for 40 years
• D) an investment earning 3 percent for 40 years

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Definitions:

Self-Efficacy

An individual’s belief about the likelihood of successfully completing a specific task.

Enactive Mastery

Gaining confidence and skill through direct experience and successful practice in specific activities.

Self-Serving Bias

Underestimates internal factors and overestimates external factors as influences on someone’s behavior.

Fundamental Attribution Error

The tendency to attribute others' actions to their character or personality, while attributing one's own behaviors to situational factors.