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:

Know why careful revision is crucial for effective communication and achieving results.

Acknowledge the factors that influence the time and effort required for revision, including message complexity and the intended impact.

Understand the importance and techniques of providing meaningful feedback to other writers.

Learn when to use different sentence lengths effectively within documents.

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Definitions:

Self-Actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone, the highest level in Maslow's hierarchy of needs.

Self-Actualization

The achievement of realizing one's abilities and possibilities, seen as an inherent motivation or necessity in all individuals.

Abraham Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Black Plague

A devastating global epidemic of bubonic plague that struck Europe and Asia in the mid-1300s, causing massive fatalities.