1.n early 2007, some investors continued to purchase real estate in the U.S., still believing that housing prices would continue to go up despite contrary evidence of the bubble bursting presented in the news media. This is an example of ___________.

A.Confirmation bias.

B.Over-optimism.

C.Over-confidence.

D.Heuristical error.

E.Self-attribution bias.

2.In the 1990s and early part of the 2000s, U.S. regulators advocated the "freeing up of markets" by deregulating the financial industry. They have forgotten the important lessons learned during the Great Depression in the 1930s. This is an example of what type of behavioural bias?

A.Heuristical bias.

B.Clustering illusion.

C.Recency bias.

D.Loss aversion.

E.Attribution bias.

3.Some investors strongly believe that stock prices rise or fall according to some set patterns that they can detect by charting the movements of stock prices over time. This is despite decades of empirical evidence that shows that stock price movements are random. This is an example of what type of behavioural bias?

A.Representativeness.

B.Attribution.

C.Anchoring.

D.Framing.

E.Heuristics.