Question 6 Classify as information cascade, incentive bias, imitation, optimistic bias. a. In the movie "The Big Short" investment managers who viewed mortgages as over-valued prior to the crises were ridiculed and suffered psychological distress. The result was that the vast majority of investment managers agreed that a mortgage crises was unlikely. b. You ask a new doctor for a second opinion. He asks what the previous doctor said.After you reveal this information, he agrees with the first doctor. C. Bond rating agencies charge bond sellers a fee to rate the riskiness of their bonds.After the mortgage crises, it was revealed that many bonds were far more risky than implied by the rating agencies. d. A few years ago, Dave attended a climate conference in which his and several other models were presented. The optimal carbon taxes differed widely and the most famous modeler had an estimate towards the low end. The next year, the models presented were in a much narrower range around the lower end of the previous year. e. A manager in charge of a software project is asked whether the project will likely be completed on time. The manager responds that "my baby" will definitely be completed on time