Answer:
a) Loss Aversion
b) Mental Accounting
c) Status Quo Bias
d) Misperceiving opportunity cost
e) Overconfidence
Explanation:
a) In Alexander's case, he is suffering from the Loss Aversion theory that is very prevalent in Economics where some people prefer not losing money as opposed to actually gaining money. Alexander does not want to lose the money he invested and so is holding on hoping to get back his money so he doesn't lose anything.
b) In Jim's case, he practices mental accounting. This is a situation where people group their various money related transactions in different groups in their mind and ascribe them different values. Jim did not attach enough value to the money he found though and so just decided to spend it.
c) Geneva faces Status quo bias which is a situation where one prefers things the way they are. She freezes every time big question is asked of her and just let's things continue the way they are every time. She faces the Status Quo Bias.
d) Tiffany misperceived her Opportunity Cost when she failed to calculate the transport cost associated with the job she took. Had she not done so, she would have factored in the correct Opportunity Cost and seen that it might be better to take the job closer to her.
e) Steve is overconfident in his ability to start a diet. He has been failing at doing so and yet believes he can do so. It is important therefore that he finds something else to spur him ti start the diet because his confidence in doing it himself is clearly a farce and does not match what he actually can do.
Answer:
$730 and 3.53%
Explanation:
Given that
Initial Price = $103.39
Ending Price = $106.69
Dividend Paid = $0.35
Number of Shares owned = 200
The computation of the dollar return and the percent return is shown below:
Dollar return is
= [0.35 + ($106.69 - $103.39)] × 200
= $730
And, the percentage return is
= $730 ÷ (200 × $103.39)
= 3.53%
The amount of money Shawheen deposited in his savings account increased in value because of the interest rate his account earns.
The initial deposit might have a higher purchasing power because of inflation.
When money is deposited in a savings account, the amount of money earns interest.
The value of the interest rate can be determined using this formula: interest earned / (time x amount deposited)
Interest earned = $$5,306.04 - $5,000 = $306.04
Interest rate = $306.04 / (3 x $5000) = 2.04%
Inflation is the persistent rise in the general price levels. Inflation reduces the purchasing power of money.
To learn more about inflation, please check: brainly.com/question/18072639
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