Fundamentals of Corporate Finance (Special Edition for Rutgers Business School)
Fundamentals of Corporate Finance (Special Edition for Rutgers Business School)
11th Edition
ISBN: 9781308509853
Author: Ross, Westerfield, Jordan
Publisher: McGraw Hill
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Chapter 22, Problem 2CRCT
Summary Introduction

To determine: The manner in which over confidence affect the financial manager of the company and the company’s shareholders.

Introduction:

Overconfidence:

Overconfidence is one’s belief about his or her own abilities that are actually better than what they really are. All human beings are overconfident about their self abilities at least in some areas. Overconfidence is associated with self attribution bias, the results in people to attribute success to their own skill, while poor results are attributed to bad luck.

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