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Using Figure 9.9,and assuming the full-employment output level is $50 billion,
Overconfidence
A cognitive bias where an individual overestimates their abilities or the precision of their knowledge, often leading to mistakes in judgment.
Behavioral Biases
Psychological tendencies that affect investment decisions and financial behaviors.
Fundamental Risk
Risk that even if an asset is mispriced, there is still no arbitrage opportunity because the mispricing can widen before the price eventually converges to intrinsic value.
Implementation Costs
Refers to the expenses involved in putting a business plan or project into action, including technology, manpower, training, and other related costs.
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