SS04

Question 1

Definition - Conservatism

Answer 1

An initially rational view is maintained even when new information contradicts

Question 2

Consequence - conservatism

Answer 2

Slow to update views and may hold securities longer than is rational

Question 3

Tradução - cognitive dissonance

Answer 3

Desconforto de descobrir que estou errado

Question 4

Tradução - heuristics

Answer 4

Atalhos

Question 5

Definition - confirmation bias

Answer 5

New evidence is sought or used to support an original view

Question 6

Consequence - confirmation bias

Answer 6

Thought processes or screenings are designed to find supporting information and ignore contradictory information

Question 7

Definition - representativeness bias

Answer 7

New evidence is classified and interpreted ba

Question 8

Definition - representativeness bias

Answer 8

New evidence is classified and interpreted based on past classification or experience

Question 9

Consequence - representativeness

Answer 9

Attach too much emphasis to data covering only a short time period or immediately reclassify based on the new information without doing a full analysis

Question 10

Definition - illusion of control

Answer 10

Individuals incorrectly think they can influence results

Question 11

Consequence - illusion of control

Answer 11

Individuals incorrectly think they can influence results

Question 12

Consequence - illusion of control

Answer 12

Trade too frequently and under diversify

Question 13

Definition - hindsight

Answer 13

Selective perception or remembrance of when past events could have been known

Question 14

Consequence - hindsight

Answer 14

Overestimate ability and take too much risk