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The Accounting Rate of Return Also Is Known as the Average

question 39

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The accounting rate of return also is known as the average rate of return or annual rate of return.


Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method, or decision.

Overconfidence Effect

The cognitive bias where an individual's subjective confidence in their judgments is greater than their objective accuracy.

Availability Heuristic

A cognitive shortcut based on the first examples that surface in one's thoughts when considering a particular topic, idea, strategy, or choice.

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