15. Circle the correct response (1 point): Johnson Pharma - a developer and manufacturer of over-the- counter pharmaceuticals (heartburn tablets, seasickness cures, etc.,) is considering acquiring a manufacturer of consumer goods (cleaning products, paper towels, etc..). Johnson management team hopes that this will bring some diversification to their operating cash flows. This is best described as a Horizontal / Vertical / Conglomerate merger? 16. Circle the correct response (1 point): Professor Gilson invests in 10 stocks per year. On average, 5 do well and 5 - not so well. Problem is, Prof. PWRG sees the 5 successes as due to his skill, whereas the 5 disappointments were bad luck or someone else's fault (Powell, Cramer... In the context of cognitive biases, this is best described as Overconfidence / Anchoring / Clustering Illusion (or simply not understanding randomness)? 11)