Our Tendency to Overestimate Our Powers of Prediction Once We

question 8

Multiple Choice

Our tendency to overestimate our powers of prediction once we know the outcome of a given event is known as:

• A) the hindsight bias.
• B) common-sense social psychology.
• C) the self-fulfilling prophecy.
• D) the "déjà vu" effect.

---

Definitions:

Figure Chart

Figure chart, often referred to as a point and figure chart, is a charting tool used in technical analysis that plots price movements without regard to time, focusing solely on price actions.

Put/call Ratio

This is a technical indicator that measures the relative trading volume of put options to call options, often used to gauge market sentiment and potential market direction.

Market Contrarians

Market Contrarians are investors who deliberately adopt investment strategies that are opposite to the prevailing wisdom or market trends.

Buy Signal

An indication or signal generated by a technical analysis or trading strategy that suggests it might be a favorable time to purchase a particular security or asset.