Because They Are So Sure of Their Ability to Pick

question 84

Multiple Choice

Because they are so sure of their ability to pick winners, some people hang on to a stock even in the face of overwhelming evidence that its price is going to drop. These people are subject to

• A) a framing bias.
• B) overconfidence.
• C) a sunk cost fallacy.
• D) overvaluing the present relative to the future.

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Definitions:

Ego Integrity Versus Despair

The final stage of Erik Erikson’s theory of psychosocial development, where older adults reflect on their life and either achieve a sense of fulfillment or experience regret.

Erikson

Refers to Erik Erikson, a psychologist known for his theory on the psychosocial development of humans, emphasizing stages throughout the lifespan.

Late Adulthood

A stage of life typically defined as beginning around the age of 65, characterized by retirement, changes in physical health, and reflection on life achievements.

Erikson

A psychoanalyst known for his theory on the psychological development of human beings, which outlines eight stages from infancy to adulthood.