Which of the Following Biases Leads to the Inflated Perception

question 89

Multiple Choice

Which of the following biases leads to the inflated perception that management is better than it actually is?

• A)Congruence bias
• B)Endowment bias
• C)Decision-making bias
• D)Anchoring bias
• E)Bandwagon bias

---

Definitions:

Reduction

A process or action that decreases the amount or size of something.

Expected Return

This is the average amount of profit or loss an investor can expect on an investment, calculated based on historical data or subjective probabilities.

Risky Securities

Financial instruments that carry a higher risk of losing the principle due to volatile market conditions but potentially offer higher returns.

Weighted Average

This is an average in which each quantity to be averaged is assigned a weight, reflecting its importance.