Misperception Often Operating Among Investors (Even Professionals),who Are More Likely

question 19

Multiple Choice

Misperception often operating among investors (even professionals) ,who are more likely to buy a stock if they see something about it in the news or if it has a high one-day return,are experiencing __________.

• A)an ethical dilemma
• B)ethnocentrism
• C)the recency effect
• D)reverse discrimination
• E)self-serving bias

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Definitions:

Specialization

The process of focusing on a narrow area of expertise, enhancing efficiency and proficiency in performing specific tasks or roles.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Centralization

The concentration of decision-making authority at the upper levels of an organization.

Specialization

The process of focusing on and becoming expert in a specific area of knowledge or activity.