Juwan Eagerly Opened an Online Trading Account,believing That His Market

question 55

Multiple Choice

Juwan eagerly opened an online trading account,believing that his market savvy would allow him to pick stocks that would make him a rich day trader. This belief best illustrates

• A)a placebo effect.
• B)illusory correlation.
• C)hindsight bias.
• D)overconfidence.

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Definitions:

Polygraph

A machine used in attempts to detect lies that measures emotion-linked changes in perspiration, heart rate, and breathing.

Electrocardiograph

A medical device used to record the electrical activity of the heart over a period of time.

Sympathetic Division

Part of the autonomic nervous system responsible for the body's 'fight or flight' response, activating physiological changes during times of stress or emergency.

Parasympathetic Division

A branch of the autonomic nervous system responsible for 'rest and digest' activities, slowing down the body after stress or exertion.