Empirical Evidence Suggests That Investors Become __________ as They Approach

question 60

Multiple Choice

Empirical evidence suggests that investors become __________ as they approach retirement.

• A) greedier
• B) less interested in investments
• C) more risk averse
• D) more risk tolerant

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Definitions:

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have foreseen it, also known as the "I-knew-it-all-along" effect.

Overestimate

To assess something as greater, larger, or more important than it actually is.

Predicted

Expected or forecasted based on current data or trends.

Mental Set

A tendency to approach situations in a certain way because that method worked in the past.