Part A. Fisher and Statman (2002) find that investors believe that their own portfolios will outperform the market portfolio. The evidence is consistent with which of the following biases? a) representativeness b) conservatism c) memory bias d) overconfidence Part B. The post-earnings drift reflects which of the following biases? a) overconfidence b) memory bias c) representativeness d) conservatism Part C. Investors' expectation about the future performance of stock market tends to rise or fall with its recent performance. Their expectation has which of the following biases? a) conservatism b) representativeness c) memory bias d) overconfidence
Part A. Fisher and Statman (2002) find that investors believe that their own portfolios will outperform the market portfolio. The evidence is consistent with which of the following biases? a) representativeness b) conservatism c) memory bias d) overconfidence Part B. The post-earnings drift reflects which of the following biases? a) overconfidence b) memory bias c) representativeness d) conservatism Part C. Investors' expectation about the future performance of stock market tends to rise or fall with its recent performance. Their expectation has which of the following biases? a) conservatism b) representativeness c) memory bias d) overconfidence
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question 2 - Biases
Part A. Fisher and Statman (2002) find that investors believe that their own portfolios will outperform the market portfolio. The evidence is consistent with which of the following biases?
a) representativeness
b) conservatism
c) memory bias
d) overconfidence
Part B. The post-earnings drift reflects which of the following biases?
a) overconfidence
b) memory bias
c) representativeness
d) conservatism
Part C. Investors' expectation about the future performance of stock market tends to rise or fall with its recent performance. Their expectation has which of the following biases?
Part C. Investors' expectation about the future performance of stock market tends to rise or fall with its recent performance. Their expectation has which of the following biases?
a) conservatism
b) representativeness
c) memory bias
d) overconfidence
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