The Return Pattern on Your Favorite Stock Has Been 5

question 33

Multiple Choice

The return pattern on your favorite stock has been 5%, 8%, -12%, 15%, 21% over the last five years.What has been your average return and holding period return over the last 5 years?

• A)4.5%; 6.5%
• B)7.4%; 38.9%
• C)7.4%; 7.76%
• D)7.4%; 76.73%
• E)None of the above

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Definitions:

Explicit Bias

Refers to the attitudes and beliefs we have about a person or group on a conscious level.

Ingroup Bias

The tendency to favor and extend loyalty to members of one's own group over those of other groups.

Ingroup Bias

The tendency for people to give preferential treatment to others they perceive to be members of their own groups.

Just-world Phenomenon

The cognitive bias to believe that the world is inherently fair and that all individuals get what they deserve, leading to rationalizations of injustice.