Gerardo Believes That Every Time He Picks Up a Penny

question 101

Multiple Choice

Gerardo believes that every time he picks up a penny he is blessed with good fortune, due to the fact that the last time he picked up a penny he had a lottery win, and the time before that he got a big bonus at work. Gerardo's perception is likely a product of a(n) ________.

• A) affect intensity
• B) high-positive affect
• C) emotional dimension
• D) self-serving bias
• E) illusory correlation

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Definitions:

Market Valuation

The process of determining the market value of an asset or company, based on supply, demand, and other economic factors.

Active Market

A financial market in which securities or commodities are frequently traded, showing significant liquidity and pricing information.

Significant Influence

Refers to the power to participate in the financial and operating policy decisions of an investee but is not control or joint control over those policies.

Voting Shares

Shares that give the shareholder the right to vote on corporate matters, such as electing the board of directors and approving policies.