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Angelina_Jolie [31]
2 years ago
9

Escalation bias refers to the situation in which:_______. a. investors put more money into a failure rather than into a success.

b. investors tend to follow the herd. c. investors have a propensity to sell winners too soon and hang on to losers too long. d. investors ignore bad news and overemphasize good news. e. investors are all noise traders.
Business
1 answer:
olchik [2.2K]2 years ago
4 0

Answer:

a. investors put more money into a failure rather than into a success.

Explanation:

The escalation bias is a part of behavioral finance. In this the investor is not accepting their mistake if they had done any kind of mistake. Rather accepting it they put more money in the asset that performed poorly also at the same time the bad news is ignored by them, they only focused to invest more and more in the stocks

hence, the correct option is a

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3 years ago
Park, Inc. acquired 100% of Gravel Co.'s net assets. On the acquisition date, Gravel's accounting records reflected $50,000 of c
Akimi4 [234]

Answer:

The  $400,000 should be a result of the acquisition of the in-process research and development activities

Explanation:

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The recording of the intangible assets based on the fair market value i.e $400,000 instead of associated costs.

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3 years ago
A citizen of one country working in another country and employed by an organization headquartered in the first country in called
KonstantinChe [14]

Answer:

A person who works in a company belonging to another country is called an expatriate. These high-ranking personnel are generally sent to other countries, mainly to promote the organizational culture of the company and for corporate purposes to be fulfilled.

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5 0
2 years ago
Brunette Company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $180,000. Th
diamong [38]

Answer:

No,  as the net present value comes in negative

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As we know that

Net present value = Present value of cash inflows - Initial investment

where,

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And, the initial investment is $180,000

Now placing these values to the above formula

So, the net present value is

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Therefore the company should not accept the project as net present value is in negative that is -$17,000

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