Our Tendency to Believe That We Can Predict the Outcome

question 81

Multiple Choice

Our tendency to believe that we can predict the outcome of random events is known as:

• A)chance bias.
• B)gambling effect.
• C)risk aversion.
• D)none of the above.

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Definitions:

U.S. Dollar

The official currency of the United States, widely used as a benchmark and reserve currency globally.

Spot Exchange Rate

The current exchange rate at which one currency can be exchanged for another.

Forward Exchange Rate

An agreed-upon exchange rate for currencies to be exchanged at a future date, used in hedging and trading strategies.

Premium

An amount paid for an insurance policy or the amount by which the price of a bond exceeds its face value.