Goldstein and Gigerenzer (1999,2002)display the Utility of Which Decision-Making Heuristic

question 38

Multiple Choice

Goldstein and Gigerenzer (1999,2002) display the utility of which decision-making heuristic in their study involving judging relative sizes of German cities?

• A) anchoring and adjustment
• B) representativeness
• C) recognition
• D) naïve diversification

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Annual Coupon Bond

A bond that pays interest to the holder on an annual basis, typically as a fixed percentage of its face value.

Face Value

The original cost of a financial instrument as stated on the certificate or document, not influenced by the market price.

Maturity

The date on which a financial instrument, such as a bond or loan, reaches its due date and the principal amount must be repaid.