Which of the Following Cognitive Biases in Finance Suggests That

question 16

Multiple Choice

Which of the following cognitive biases in finance suggests that people tend to be overconfident in their predictions of the future

• A) Mental accounting
• B) Biased expectations
• C) Reference dependence
• D) Representativeness heuristic:

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Definitions:

Fake Versions

Non-genuine imitations of products, often of lower quality and illegally produced, intended to deceive consumers.

Dark Side

Aspects of something that are negative, harmful, or undesirable, often hidden or overlooked.

Consumer Behaviour

Delving into the processes by which individuals, groups, or businesses select, secure, utilize, and rid themselves of products, services, experiences, or ideas to cater to their needs, and assessing how these processes impact both the end users and the society at large.

Consumption Addiction

A behavioral condition where an individual becomes excessively preoccupied with purchasing and using goods or services.