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Author Question: Which of the following is correct regarding anchoring bias? (Read 5 times)

Sadjam2

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Which of the following is correct regarding anchoring bias?

When the market is performing better than average, anchoring bias makes people tend to think it will perform worse than average.


Anchoring bias is a phenomenon where many people focus too closely on recent events when predicting future events.


When anchoring bias is coupled with overconfidence, investors can become convinced that their prediction of an increasing market is wrong, thus creating even less demand for stocks.


Anchoring bias and overconfidencewill drag down stock prices.



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Marked as best answer by Sadjam2 on Aug 7, 2023

sin

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Sadjam2

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review


jomama

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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