Jeremy Believes He Excels at Picking Stock Winners and Thus

question 31

Multiple Choice

Jeremy believes he excels at picking stock winners and thus trades frequently. Which characteristic does he most likely represent?

• A) Confirmation bias
• B) Frame dependence
• C) Overconfidence
• D) Representativeness heuristic
• E) Break-even effect

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Definitions:

Representative Sample

A segment of the population that precisely represents the characteristics of the whole population.

Population of Interest

A specific group of individuals or entities that a researcher or study aims to understand or draw conclusions about.

Independent Variable

In a study, the variable that the researcher alters to determine its impact on the dependent variable.

Dependent Variable

In an experiment, the variable that is observed and measured for change, thought to be influenced by the independent variable.