The Risk That Errors Can Occur in Inputs to a Pricing

question 39

Multiple Choice

The risk that errors can occur in inputs to a pricing model is called

• A)input risk
• B)model risk
• C)pricing risk
• D)valuation risk
• E)none of the above

Understand the impact of social and cognitive biases, such as the self-serving bias and overconfidence effect, on individual behavior.

Recognize the implications of time inconsistency and the use of precommitments in managing self-control problems.

Appreciate the role of fairness and altruism in economic behavior, as illustrated by the dictator and ultimatum games.

Understand the implications of hardwired heuristics on the difficulty of changing behavior through information alone.

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