Which of the Following Best Illustrates the Overconfidence Bias

question 51

Multiple Choice

Which of the following best illustrates the overconfidence bias?

• A) Investors sell winners too early.
• B) Investors avoid stocks with recent poor performance.
• C) Investors hold losers too long.
• D) Investors trade securities too frequently.

---

Definitions:

Contribution Margin

The amount by which the sale of a product exceeds its variable costs, contributing to covering fixed costs and generating profit.

Commercial Segment

A portion of a market composed of businesses and organizations, as opposed to individual consumers.

Wholesale Division

A segment of a company that deals with selling goods in large quantities at lower prices, typically to retailers or other businesses rather than direct to consumers.

Contribution Margin

The difference between a company's sales revenue and variable expenses, indicating how much revenue contributes to covering its fixed costs and generating profit.