The ________ Bias Is a Tendency to Fixate on Initial

question 69

Multiple Choice

The ________ bias is a tendency to fixate on initial information and fail to adequately adjust for subsequent information.

• A)hindsight
• B)overconfidence
• C)anchoring
• D)availability
• E)self-serving

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Definitions:

Trading Costs

Expenses associated with buying and selling securities, including broker commissions and the bid-ask spread.

Total Costs

The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Net Present Value

A method used in capital budgeting to evaluate and compare the profitability of investments, which calculates the difference between the present value of cash inflows and outflows.

Concentration Accounts

A single account used by companies to aggregate funds from different accounts, simplifying cash management.