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19 Behavioral Finance: Definitions Please match the bias on the left to the definition/or situation on the right Overconfidence Choose Rational irrationality (Coach's term) |
19
Behavioral Finance: Definitions Please match the bias on the left to the definition/or situation on the right Overconfidence Choose Rational irrationality (Coach's term) | Choose] Confirmation bias [ Choose! Representative bias I Choose) Prospect theory [Choosel [ Choose People tend to look for information that confirms their point of view People tend to overestimate their skills People sometimes do irrational things (go with the crowd when it seems wrong) for rational reasons (to protect one's job) People tend to use stereotypes to make decisions (e.g., the future is like the past) People tend to hold onto losers Step by Step Solution
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