Question: 1. [2 marks] You are certain that a share of Apple, which is currently $400, will be worth $415 in 6 months. However, instead you

1. [2 marks] You are certain that a share of Apple,

1. [2 marks] You are certain that a share of Apple, which is currently $400, will be worth $415 in 6 months. However, instead you could buy a 6-month bond that pays continuously compounded interest at a rate of 10% per an- num. To maximize your expected return, you should: A. Buy shares of Apple B. Invest in the bond C. Buy a lottery ticket

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1. The concepts that are used to describe social situations are mental constructions.

The facts rule: We have a tendency to have more confidence in information that is documented with figures than information that isnt.

The permanence rule: We tend to have more confidence in information that is of a more permanent nature than information that is of a temporary nature.