Question
A) Which of the following statements best describes the availability bias? An investor: a. only notices information that agress with their perception or beliefs b.
A) Which of the following statements best describes the availability bias? An investor:
a. only notices information that agress with their perception or beliefs
b. associates new information with an easilyh recalled past event
c. bases a decision on how the information is presented
B) Which of the following is the best course of action to reduce the overconfidence bias?
a. Keep detailed records of trades developing a track record of performance relative of strategy determining when strategy led to success as compared to luck
b. Increase the confidence interval of forecasts since overconfidence tends to lead to confidence intervals that are too narrow
c. Seek the opinions of others to find contrary viewpoints allowing for further scrutiny of predictions
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