A Friend of Yours Recommends a Stock Based Upon a "Hot

question 68

Multiple Choice

A friend of yours recommends a stock based upon a "hot tip." You purchase it, and it subsequently declines the following year. Your friend advises you to purchases more at the lower price, despite clear evidence that this is not a sound company. Your friend is displaying which cognitive bias?

• A) escalation of commitment
• B) cognitive dissonance
• C) frequency
• D) projection

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Definitions:

Job Analyst

A professional who studies job requirements and content to establish the duties, responsibilities, and qualifications that comprise a job position.

Comprehensive Job Analysis

An in-depth examination and documentation of all aspects of a job, including duties, responsibilities, and requirements.

Potential Drawbacks

Refers to possible disadvantages, risks, or negative consequences that may arise from a decision, action, or strategy.

Job Incumbents

Individuals who currently hold a particular position or role within an organization.