Frank Mistakenly Believes That There Are More Words That Begin

question 87

Multiple Choice

Frank mistakenly believes that there are more words that begin with the letter "k" than there are with the letter "k" in the third position due to the ________.

• A) representativeness heuristic
• B) availability heuristic
• C) planning fallacy
• D) confirmation bias

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Definitions:

Preferred Shares

A class of ownership in a corporation that has a higher claim on assets and earnings than common shares, usually with fixed dividends.

Earnings Per Share

A company's profit divided by its number of common outstanding shares, indicating the company's profitability.

Dividend Yield Ratio

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Dividend Payout Ratio

A financial ratio that measures the percentage of a company's net income that is distributed to shareholders as dividends.