Experimental Studies Suggest That When Informed That the Advice They're

question 1

Multiple Choice

Experimental studies suggest that when informed that the advice they're receiving may be biased because of a conflict of interest,

• A)those who disclose a conflict of interest rarely end up giving more biased advice than those who do not disclose
• B)those who disclose a conflict of interest always end up giving more biased advice than those who do not disclose
• C)People tend to fail to discount the advice as much as they should.
• D)people tend to discount the advice as much as they should.

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Definitions:

Risk-Averse

A characteristic of investors who prefer lower risk investments, opting for certainty and stability in their investment choices.

Variance

A measure of the dispersion of a set of data points around their mean value, representing the average of the squared differences from the mean.

Reward-To-Volatility Ratio

A measure used in finance to assess the return of an investment relative to its risk, with higher ratios indicating better risk-adjusted returns.

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points, often used in finance to gauge the volatility of an investment.