If Investors Overweight Recent Performance in Forecasting the Future, They

question 35

Multiple Choice

If investors overweight recent performance in forecasting the future, they are exhibiting ________.

• A) representativeness bias
• B) framing error
• C) memory bias
• D) overconfidence

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Definitions:

Pragmatics

The study of how context influences the interpretation of language, including the intentions and social implications behind words.

Morphemes

The smallest grammatical units in a language that carry meaning, such as roots, prefixes, and suffixes.

Overextension

The cognitive error in language development where a child inappropriately applies a word to a wider range of objects or actions than it actually applies to.

Two-Word Utterances

An early language development stage where toddlers combine two words to communicate simple concepts or desires.