Survivorship Bias Occurs When Mutual Funds Are Merged or Liquidated

question 14

True/False

Survivorship bias occurs when mutual funds are merged or liquidated and only surviving funds' performance is reported.

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Definitions:

Postdecisional Dissonance

Postdecisional dissonance is the psychological discomfort experienced after making a difficult choice, often leading individuals to justify their decision or devalue the rejected alternatives to reduce the dissonance.

Selective Exposure

The tendency of individuals to favor information that reinforces their pre-existing views while avoiding contradictory information.

Regret

A feeling of sadness, repentance, or disappointment over something that has happened or been done.

Blascovich and Colleagues

Refers to Jim Blascovich and his research team, known for their work in social neuroscience, including studies on social stress and biopsychosocial models of challenge and threat.