Investors trading a lot is an example of representativeness bias conservatism bias forecasting errors overconfidence I have just purchased $10,000 of ABC stock 48 hours after analysing the company's very positive annual report and witnessing a consequential 28% rise in ABC 's share price. This is an example of: Conservatism bias Forecasting errors Representativeness bias Overconfidence Framing Information processing theory on forecasting errors state that investors give more weight to recent experiences than prior beliefs and information, and therefore create forecasts that are biased. an individual's existing personal beliefs are likely to dominate the forecasting process. the information presented to the forecaster has a lesser effect on the forecasting process depending upon the forecaster's perception of this information. investors are too influenced by external factors and therefore, are prone to forecasting using irrelevant information. Which of the below scenarios best describes mental accounting? Buying more of a certain stock because you are pleased with the company's recent performance. Freely accessing and spending dividend returns, but refusing to sell a single stock that has a similar rate of return for the same purpose. The tendency for investors to assess investment decisions based on the manner that the choice is posed to the investor. Deciding not to trade any stocks on a day when the S\&P has remained stable. Which of the following asset allocation decisions are typical regret avoidance behavior? Check all that apply: Focusing on well-known companies with sound financials. Allocating 50% of one's portfolio to various graphite mining companies in the Mozambique that show high growth potential. Avoiding companies with high book-to-market ratios. Buying Company A instead of Company B because Company A's share price has outperformed Company B's share price over the last 2 years. Using diversification to minimize portfolio risk