The Stock of PHRM, the Price Declined by 30% When

question 87

Multiple Choice

The stock of PHRM, the price declined by 30% when the FDA did not approve a promising new therapy the company was developing.Patrick holds on to the stock and constantly searches the internet looking for favorable stories about the company while ignoring a cascade of negative reports.This is an example of

• A)anchoring.
• B)overconfidence.
• C)belief perseverance.
• D)loss aversion

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Definitions:

In-Groups

refers to groups to which an individual feels a sense of belonging, often characterized by a strong sense of identity and loyalty.

Out-Groups

Groups or individuals not belonging to or excluded from one’s own group, often perceived with bias or negativity due to differences in beliefs, behaviors, or characteristics.

In-Group

A group to which a person belongs and identifies with, often leading to favoritism towards members of the same group.

Out-Group

Individuals or groups that are perceived as different or apart from an established in-group, often leading to exclusion or negative biases.