Module 6 homework: Chapter 10 The Mind of the Investor**** FINANCIAL MARKETS

Most importantly be sure  the works includes  proper citing. A general citation at the end of  paragraphs is not enough – will need to know what was the  original writing and what came from the source? Each sentence cited, paraphrased, or even the idea of another needs an in-text cite

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  • Chapter 10, page 321 (online text), or page 322 (textbook) Questions 6 and 7. These questions ask you to provide your reasoning for different decisions and explain why others may act in a specific way.

For additional details, please refer to the Homework Guidelines and Rubric document.

Below  are the questions :

6. For each of the following three scenarios, would you rather:

   a. Receive $100 in one month or $100 in two months (most people prefer the former)?

   b. Be given an excellent meal at a nice restaurant in one month or in two months (most people prefer the former)?

   c. Be given a mediocre meal at a mediocre restaurant in one month and then an excellent meal at a nice restaurant in two months or an excellent meal at a nice restaurant in one month followed by mediocre meal at a mediocre restaurant in two months (most people prefer the former)?

Assume that you respond as do most people. Explain any inconsistency in your preferences.

7. Churches, schools, and other nonprofit institutions have held jelly bean counting contests where contestants compete for a prize by estimating the number of jelly beans in a large jar. There is evidence suggesting that averages of contestant estimates tend to be superior to specific individual estimates. Why might this be true?

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