For Every Choice a Person Makes It Can Be Assumed

question 145

Multiple Choice

For every choice a person makes it can be assumed that

• A) the chooser has full knowledge of the situation.
• B) some opportunity cost was involved.
• C) there is a fifty-fifty chance the choice was the wrong one.
• D) a good is involved and satisfaction is gained.

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Definitions:

January Effect

A seasonal increase in stock prices that often occurs in January after the sell-off for tax purposes in December.

Neglected

In financial contexts, this refers to assets or securities that are underfollowed or overlooked by investors and analysts.

Passive Portfolio Management

An investment strategy that tracks a market-weighted index or portfolio, minimizing buying and selling to reduce costs and turnover.

Mispriced Securities

Mispriced Securities are financial instruments that have a market price significantly different from their intrinsic value.