Ch22 - COURSES > FUNDAMENTALS OF CORPORATE FINANCE:, 9/E-...

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Add, modify, and remove questions. Select a question type from the Add Question drop-down list and click Go to add questions. Use Creation Settings to establish which default options, such as feedback and images, are available for question creation. COURSES > FUNDAMENTALS OF CORPORATE FINANCE:, 9/E - ROSS > CONTROL PANEL > POOL MANAGER > POOL CANVAS Pool Canvas Add Multiple Choice Creation Settings Name Chapter 22 Behavioral Finance: Implications for Financial Management Description Questions which Blackboard's assessment component is incapable of supporting are not included in the export. Instructions Add Question Here Question 1 Multiple Choice Question Amy is the chief financial officer of a retail toy store. Recently, she decided that the firm should expand its operations and open two additional stores. Within a very brief period, it was obvious that Amy had made a very bad decision in opening those stores, given that the economy is in the middle of a severe recession. In reflecting back on her decision, Amy realizes that she made a bad decision due to a reasoning error. Which one of the following areas of study best applies to this situation? Answer corporate ethics financial statement analysis managerial finance debt management behavioral finance Correct Feedback Refer to section 22.1 Incorrect Feedback Refer to section 22.1 Add Question Here Question 2 Multiple Choice Question Peter has successfully managed the finances of A.D. Leadbetter in a manner that has yielded abnormally high returns. Due to this success, Peter has decided to publish a newsletter for financial executives so that he can share his superior financial wisdom with others. There is a very real probability that Peter has which one of the following characteristics? Answer gambler's fallacy frame dependence overconfidence representativeness heuristic sentiment-based risk attitudes Correct Feedback Refer to section 22.2 Incorrect Feedback Refer to section 22.2
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Add Question Here Question 3 Multiple Choice Question Anytime Ted analyzes a proposed project, he always assigns a much higher probability of success to the project than is warranted by the information he has gathered. Ted suffers from which one of the following? Answer frame dependence overconfidence gambler's fallacy confirmation bias overoptimism Correct Feedback Refer to section 22.2 Incorrect Feedback Refer to section 22.2 Add Question Here Question 4 Multiple Choice Question The tendency for a decision maker to search for confirmation that a recent decision he or she made was a good decision represents which one of the following characteristics? Answer overconfidence overoptimism affect heuristic confirmation bias representativeness heuristic Correct Feedback Refer to section 22.2 Incorrect Feedback Refer to section 22.2 Add Question Here Question 5 Multiple Choice Question Which one of the following refers to the fact that an individual may reply differently if a question is asked in a different manner? Answer
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This note was uploaded on 06/22/2010 for the course FIN 600 taught by Professor Marks during the Spring '10 term at Odessa College.

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Ch22 - COURSES > FUNDAMENTALS OF CORPORATE FINANCE:, 9/E-...

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