Suppose You Have a Friend Who Is Just Beginning College,and

question 62

Multiple Choice

Suppose you have a friend who is just beginning college,and she plans to go to school half-time.She estimates that she will earn her bachelor's degree in about 7 years,rather than 8 years.It is most likely that she

• A)is avoiding the use of the recognition heuristic.
• B)is using a syllogism inappropriately.
• C)is falling victim to the planning fallacy.
• D)should make better use of conditional reasoning.

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Definitions:

Repurchase Shares

A corporate action where a company buys back its own shares from the marketplace, which can reduce the number of outstanding shares and potentially increase the value of remaining shares.

Stock Outstanding

The total shares of a corporation's stock currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s insiders.

Rate

A measure often used in finance to denote a percentage charged or paid over time, such as an interest rate or growth rate.

EBIT

Earnings Before Interest and Taxes, a measure of a company's profitability that excludes interest and income tax expenses.