-Which of the following statements best describes the illusion of knowledge?

A. The belief that positive statements by corporate executives about their company's future prospects are likely to be true

B. The belief that information that you possess is superior to information that's held by other investors

C. The belief that publicly announced financial information has already been discounted in market prices.

-Which of the following best describes a noise trader?

A. A trader whose trades are driven by the prospect of future events

B. A trader whose trades aren't based on meaningful financial analysis or information

C. A trader who uses technical analysis to pick his or her securities

D. A trader who uses fundamental analysis to pick his or her securities

D. The idea that because an investment manager has been right on past stock picks he or she will continue to make superior picks in the future.