How does overconfidence affect investors?
What will be an ideal response?
Answer: Investors tend to be overconfident. Simply put, people think they know more than they do. This overconfidence applies to their abilities, their knowledge, and the future. In effect, most investors think they can beat the market. Overconfidence also leads to trading too often. Of course, there is the chance that those who trade more frequently earn higher returns. Overconfidence afflicts men more often than women, and it also leads men to trade too often.
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Answer the following statement true (T) or false (F)
Which one of the following is NOT true of peers as a source of performance information?
A. Peers may know the job requirements better than a supervisor in some cases. B. Peers can evaluate the ability of others to interact within the group or team better than supervisors in many cases. C. Research regarding validity of peer evaluations is overwhelmingly clear on their lack of bias. D. Peer ratings are particularly useful when supervisors do not have the opportunity to observe employees. E. All of the above are true.
Which one of the following statements about lot-sizing rules is TRUE?
A) The periodic order quantity (POQ) rule seeks to create inventory remnants. B) If the POQ rule is used, an item's lot size can vary each time an order is placed. C) The lot-for-lot (L4L) rule is a special case of the fixed-order quantity (FOQ) rule. D) All lot-sizing rules seek to minimize inventory levels.
Dutch researcher, Fons Trompenaars, recommends that when people from specific cultures do business in diffuse cultures, they should ________.
A. not acknowledge achievements or skills that are irrelevant to the issues being discussed B. not get impatient when people are being indirect or circuitous C. try to get to the point and be efficient D. learn to structure meetings with the judicious use of agendas