The Tendency to Look for Information That Supports One's Own

question 43

Multiple Choice

The tendency to look for information that supports one's own belief is called ________.

• A) the principle of falsifiability
• B) confirmation bias
• C) criterion validity
• D) volunteer bias

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Definitions:

Times Interest Earned

A ratio that measures a company's ability to meet its debt obligations, calculated by dividing earnings before interest and taxes by the interest expense.

Debt-To-Equity Ratio

A financial ratio indicating the relative proportion of shareholder's equity and debt used to finance a company's assets.

Equity Multiplier

A financial leverage ratio that measures the portion of a company`s assets that are financed by its shareholders' equity.

Price-Earnings Ratio

A valuation ratio comparing a company’s current share price to its per-share earnings, helping investors evaluate if a stock is over or under-valued.