The Fundamental Attribution Error Is Likely to Lead Observers to Attribute

question 49

Multiple Choice

The fundamental attribution error is likely to lead observers to attribute a stranger's

• A) lack of employment to a weak economy.
• B) act of kindness to a compassionate personality.
• C) criminal behavior to a poor education.
• D) friendliness to social role requirements.

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Definitions:

Retail Industry

A sector of the economy that consists of individuals and companies engaged in the selling of finished products to end user consumers.

Positive Earnings Surprises

Occurs when a company's reported earnings exceed analysts' expectations.

Abnormal Return

The difference between the actual return of an investment and the expected return given its risk profile and market performance.

Price Drift

The slow and incremental movement in the price of an asset, reflecting gradual changes in investors' valuation over time.