Which of the Following Is the Most Risky

question 82

Multiple Choice

Which of the following is the most risky?

• A) Buying stocks online
• B) Buying on margin
• C) Buying from a broker
• D) Buying a bond

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Definitions:

Confirmation Bias

The habit of looking for, comprehending, selecting, and reminiscing about information that validates an individual's prior convictions or theories.

Hindsight Bias

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

Timing Bias

A form of cognitive bias where an individual's decisions or perceptions are influenced by the timing of information or events.

Base Rate Neglect

The tendency to ignore information about general principles in favor of very specific but vivid information.