Explain the difference between over-confidence versus over-optimism.

Over-Confidence

A cognitive bias where an individual's belief in their own abilities or the prospects of a situation are excessively optimistic beyond what evidence supports.

Explore the consequences of having too much confidence and optimism on the choices made by managers.
Understand the role of behavioral finance in financial planning and forecasting.

Verified Answer

Milan HernándezJul 08, 2024

Final Answer :

The tendency for decisions to produce overly favourable estimates and opinions.

Learning Objectives

Explore the consequences of having too much confidence and optimism on the choices made by managers.
Understand the role of behavioral finance in financial planning and forecasting.

Explain the difference between over-confidence versus over-optimism.

Definitions

Learning Objectives

Learning Objectives

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