Asked by
Krista Forbes
on Nov 06, 2024
Verified
Peter has successfully managed the finances of Jackson Corporation in a manner that has yielded abnormally high returns. Due to this success, Peter has decided to publish a newsletter for financial executives so that he can share his superior financial wisdom with others. There is a very real probability that Peter has which one of the following characteristics?
A) Gambler's fallacy.
B) Frame dependence.
C) Overconfidence.
D) Representativeness heuristic.
E) Sentiment-based risk attitudes.
Overconfidence
A cognitive bias characterized by an individual's unjustifiable faith in their own intuitive reasoning, judgments, or cognitive abilities.
Financial Wisdom
The knowledge and understanding necessary for making prudent financial decisions, encompassing personal finance, investing, budgeting, and saving strategies.
- Pinpoint and expound on diverse behavioral tendencies and heuristic strategies.
- Scrutinize the influence of overconfidence along with assorted biases on managerial judgment and decision-making.
Verified Answer
SM
Learning Objectives
- Pinpoint and expound on diverse behavioral tendencies and heuristic strategies.
- Scrutinize the influence of overconfidence along with assorted biases on managerial judgment and decision-making.
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