If a Friend Tells You That He Is Certain a Stock

question 80

Essay

If a friend tells you that he is certain a stock price will rise based on information he heard on television or saw on the Internet, should you be skeptical? Explain.

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Definitions:

Serial-Position Effect

A psychological phenomenon in which a person tends to remember the first and last items in a series better than the middle items.

Retrieval

The process of accessing and bringing into consciousness information stored in memory.

Stored Information

Data or knowledge retained in the mind or in digital/formal systems for future use.

Consciousness

A concept with many meanings, including sensory awareness of the world outside, direct inner awareness of one’s thoughts and feelings, personal unity, and the waking state.