Question
Financial media often invites fund managers or analysts to predict future stock returns and will only invite them back if their predictions produce positive outcomes.
Financial media often invites fund managers or analysts to predict future stock returns and will only invite them back if their predictions produce positive outcomes. This type of behavior by the media could lead to which of the following bias?
1-Availability heuristic/bias
2-Gamblers fallacy
3-Hot hand fallacy
You purchased 200 shares of GPRO when it went IPO. The stock doubled in price within 3 months. You sold 100 shares, thus recovered your cost, and decided to keep the other 100 shares. The stock price has declined by more than 90% since. You told yourself it is no big deal since you didnt lose money. This is an example of:
1-House money effect
2-Availability heuristic/bias
3-Overconfidence
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