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The shortcuts our brains employ to process information and enable us to make quick decisions are collectively referred to as Affects Biases Cognitive illusions 'Heuristics An investor might be exhibiting loss aversion by adding to an existing financial position (i.e. buying more of a certain security) when The existing position has an unrealized loss The existing position has an unrealized gain He/she has lots of money and the position is inconsequential to their wealth The investor intends to hold the position for a long time Which of the following statements is untrue? People tend to underweight extremely small probabilities (interpreting them to be essentially zero) People tend to underweight outcomes that are merely probable versus those that are more certain People tend to overweight the probability of success being due to skill versus chance People tend to underestimate their own abilities Behaviorists argue that financial markets are not as efficient as the EMH contends, citing The fact that people could not possibly calculate all the things in their heads that the EMH assumes they do before making decisions Anomalies in market action that should not occur in an efficient market All of the these Studies that show biases to be both pervasive and systematic The two psychologists are most often credited with launching the Behavioral Finance movement in the 1980s are Shiller and Fama Kahneman and Thaler Shiller and Shleifer Kahneman and Tversky