An Analyst Has a Limit Order Outstanding on a Stock

question 22

Multiple Choice

An analyst has a limit order outstanding on a stock.He argues that the probability that the order will execute before the close of trading is 0.20.Thus,the odds for the order executing before the close of trading are ________.

• A)1 in 4
• B)1 in 5
• C)4 to 1
• D)5 to 1

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Definitions:

Cognitive Dissonance

A psychological discomfort experienced when holding contradictory beliefs or values, or when behavior and beliefs do not align, often leading to a change in beliefs or behaviors to reduce the dissonance.

Small Amount

A quantity that is less than average or nominal, often referring to a minimal or insignificant portion of something.

Opinion

A belief or judgment that rests on grounds insufficient to produce complete certainty.

Cognitive Dissonance

The discomfort in one's mind arising when an individual simultaneously holds multiple conflicting beliefs, ideas, or values.