Asked by Takafumi Yoshida on May 31, 2024
Verified
Which of the following best describes an unrealistic belief that one can accurately predict outcomes?
A) Overconfidence
B) Over-optimism
C) Over-precision
D) Overcorrection
Over-precision
A cognitive bias causing someone to be too confident in their own judgments and decisions.
Predict Outcomes
The process of forecasting the possible results of a particular situation or decision.
Unrealistic Belief
A conviction or perception not supported by evidence or reality, often overly optimistic or pessimistic about potential outcomes.
- Identify the effects that behavioral biases including overconfidence, over-optimism, and over-precision have on the choices investors make and market conditions such as bubbles.
Verified Answer
LD
Lauren DaviesMay 31, 2024
Final Answer :
C
Explanation :
Over-precision is the unrealistic belief that one can accurately predict outcomes, reflecting an excessive certainty in the accuracy of one's beliefs.
Learning Objectives
- Identify the effects that behavioral biases including overconfidence, over-optimism, and over-precision have on the choices investors make and market conditions such as bubbles.