If You Believed in the Reversal Effect, You Should ________

question 74

Multiple Choice

If you believed in the reversal effect, you should ________.

• A) buy bonds this period if you held stocks last period
• B) buy stocks this period that performed poorly last period
• C) buy stocks this period that performed well last period
• D) do nothing if you held the stock last period

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Definitions:

Ingroup/Outgroup Bias

The tendency to favor members of one's own group (the ingroup) over those from different groups (outgroup), often leading to prejudice and discrimination.

Self-Fulfilling Prophecy

A belief or expectation that influences behavior in a way that makes the belief become true.

Thin Slices

Quick judgments made about people or situations based on very limited information, often relying on intuition.

Nonverbal Behavior

Communication without words, including gestures, facial expressions, and body language.