You are the manager of a retail store. You believe the economy is in a recession and that sales for the month will be unusually slow

You are the manager of a retail store. You believe the economy is in a recession and that sales for the month will be unusually slow. Since you have complete discretion over the pricing at your location, you decide to have a store-wide sale and offer 10 percent off all merchandise for a 3-day period. You don't expect your superiors to criticize this decision as you believe they, along with the majority of the other store managers, feel the same way about the economy as you do. Which one of the following applies to you?    A.  recency bias B.  law of small numbers C.  gambler's fallacy D.  false consensus E.  money illusion Refer to section 22.4

36.	Which of the following create limits to arbitrage? I. risks related to an individual firm II. implementation costs III. rational traders IV. noise traders    A.  I and III only B.  II and IV only C.  I, II, and III only D.  I, II, and IV only E.  I, II, III, and IV Refer to section 22.5

37.	AB Industries is an all-equity firm that has $10 per share in cash and a book value per share of $12. At which one of the following market prices would you know with absolute certainty that the stock was mispriced?    A.  $9 B.  $10 C.  $11 D.  $12 E.  $13 Refer to section 22.5